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So you are not worried that professional money is avoiding pphm because that gives them room to purchase later? The fact the the stock is shunned and avoided NOW is a non-issue I guess.
That has what to do with the factual point that pphm has a very low level of II and 1/2 of that low number is with one firm?
Which is awful. And 1/2 with a single party. Check pphm peers
And pphm has a very very low base of Institutional investors. This is certainly not a bright spot for pphm - right?
pphm has very very little II ownership. The fact that a couple have taken a flyer here does not change that fact.
Follow the money? pphm is a retail stock with few institutional holders.
The mantra that the company announced? Have they retracted it? Didn't they just have a vote to approve? Don't they have to do a RS or go to pink sheets? Let me guess .... a secret partnership?
You need to take a closer look at the bod. They are truly indefensible. The board structure, compensation, lack of industry contacts, lack of industry experience., lack of deal-making experience, track-record of boiler-room penny stocks. These things are a huge anchor on the shareprice.
Please. BOD members of Fortune 500 companies are ineffective figureheads and pphm are hard working key parts of the day to day operation? That is just not true.
The average Fortune 500 company bod member makes a bit over $250k for their board work. Pretty easy to confirm, lots of places track this. Here is one: https://www.willistowerswatson.com/en/press/2016/07/directors-compensation-increased-moderately-in-2015
That's not how companies work. You need cash flow. you have receivables, Have you noticed that every other company has low interest loc's, capital equipment loans etc.
Your guess: a 600-700% increase from a broken company coming off a failed make or break PIII. A company with no running trials, no products, the weight of pending RS, a terrible reputation (many investors bet the jockey), a slimy bod.
My guess: they drift around the $.20-.$.40 range and do the RS next quarter.
Those both seem to have the same probability to you?
And essentially wiping out past shareholders. If pphm becomes just Avid they have spent 1/2 billion of shareholder $$ build a small $50m mfg.company..
You think none of the ATM money is going to Avid? How do you think they staffed, built the facility, managed the cash flow, etc. They have no other source of funds right. Most mfg. companies would have an loc for operations and capital equipment financed separately.
What test kit? They have no test kit. They have announced no plans to make a test kit.
ok to clarify. Products, as in things you sell to a customer and generate revenue. They have none of these.
It shows nothing as you have no idea if they are holding the shares or just taking a quick profit. I would purchase every quarter and sell the same day or next. I didn't even need to put up the cash the broker did that. Free money.
Avid = 0 You want to break up company, move around pieces and make a free-standing company that is profitable and free of pphm ...then you can get a value. But you will have breakup costs.
Cash = COH x .7 or so for accruals
competition for what? Unclear if pphm has anything of value ip-wise
add in something for NOL value - again though this is an acquisition.
$70m as is
$150+m if you liquidate and have just a lean avid
$.14? I think there are no more swans to kill; no event that awful I can think of ....
- CEO is in scandal:fired = good thing
- bod charged with malfeasance = good thing
- trial fails ... wait no trials
- product ships late ... oops no products
- I guess Avid could miss, but they just did, so no one is valuing avid too high.
So there is the silver lining here. They are doing so little that there is nothing to cause large downward spike.
So a new BLA is coming for Sunrise?
I can't see the sp going to $.15 but you make a good point. Even if at 22 the rs would have sp at $1.5x. Then the usual post RS dump and $1 is back in range. Who was it that said RS are a neutral event. This month drop seems a bit more than of a neutral event.
This is the most expensive (in terms of shareholder funding) manufacturing facility in history. So much for moon shots and astronomical value. Now pphm is a manufacturing company. Worth 1-2x sales at most and that's if you can get rid of the pphm overhead. So basically avid is worthless to shareholders because no value can be realized with pphm gobbling up and margin generated.
ATM sales to fund a low margin manufacturing business is abusive. In this financial climate there are much cheaper lending vehicles if avid is alone. Shareholders put up their capital for high return not basic mfg.
So glad they announced the RS but will take their time implementing. At least the monthly chart is looking healthy. monthly pphm
Would be nice if Dart or someone became active. The value of the NOLs varies from deal to deal but yes it is a chunk of change. Avid value is totally offset by having to carry pphm overhead and mgmt. Sell bavi, exomes, other ip, nols to highest bidder, dump all pphm staff that new co does not want. Set Avid up with correct staff for sales and 5-10% profit.
The pphm sale proceeds, cash on hand, standard valuation ofr bio mfg. (1.5-2x revs). Add that up and you are not doing a RS anymore.
The die is cast. There will be a 3rd RS. They should have done it right away as most companies do. To wait just lets shareprice erode as the event is looming. Then, as you say, it will be driven down after the actual RS.
2 cents is 7% hardly tight spread.
ATM after RS
Even IF things hold around $.3 here the RS will turn a current share to low $2's and the RS shorting magic will bring it below $2. Well into the $.20's at current share structure. Which of course puts pressure on current price as who wants to buy penny stock with pending RS to short. Hofstadter would love it.