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Okay Kabunushi - Let's hope for this type of news:
And this is for a company just out of phase I
What don't you understand, Kabunushi?
I know you want to live on wishful thinking and believe everything that MD is saying, but the company has not provided any meaningful guidance and has already effectively given (as best I can describe) as negative guidance when they repriced their long-dated warrants at $1.
Investors should have expectations for management and how they address investor concerns. If I were a short, I would be giddy with excitement at a stock that has tail spun to 75 cents and a management team that apparently enjoys scaring the wits out of investors and repelling interest from institutional investors. But because I'm a long, I'm pretty pissed off at what I'm seeing. But I know that's hard for you to understand.
We'll see about news this week. I hope there is a block buster PR, but that's just my hope; certain people, supposedly in the know, will have their credibility riding on it.
Linda needs to provide guidance to investors (period).
If the company has to wait until year end to release any accretive news, then this stock is going to suffer from some very serious dilution at the expense of investors.
That would be very good news.
Not sure what that face is, really?
But anyone suggesting that maybe they sell the company for $5 or more, is obviously not a short when the stock price is 80 cents. Could I be posting on behalf of a potential buyer that's put an unsolicited offer on the table, that's possible I guess?
But the reality is I'm just a long like many others with just a slightly different opinion.
Would investors rather receive $5 a share tomorrow, or wait six to twelve months to maybe receive $10 a share while incurring the risk of receiving nearly zero if the news turns out bad? And even with good news, take into effect all the dilution or other issues that could negatively affect the stock price.
And let me add again, if management is so confident with the cards they're holding, then why are the warrants priced at $1?
Given the level of uncertainty as succinctly described below, I'll make the point (again) that management needs to be exploring the possibility of selling the company. I'm not saying they necessarily should sell at any price, but they need to consider taking a reasonable offer.
Never in summer
Dude, you need to understand this is a message board.
I can explain what that means, if you need the help?
I'll first say that like you or all other investors, we want to hit a home run. And there's still plenty of chance that still may happen at any time; could happen tomorrow morning for all we know? But we just don't have any idea what's going on with the FDA and how long this process might take to what we expect is a positive conclusion...and apparently neither do Linda and Les.
As far as premature conclusions about management, I believe we can agree on several observations. We know the company and the stock has come under attack; we know that there has been a dramatical decline in the stock price; and we know that management has been hapless in responding to either one. (We still haven't received the release of the investigative report.)
Within that context, my own personal observation is a management does not communicate well with shareholders. And we know the last capital raise was very disorganized and poorly timed that required the need for couple of different amendments. This in turn has exacerbated the decline in the stock price, with the last amendment to re-price the options at $1 being quite the negative message to the market.
Frankly, given all the above, it's difficult to have faith in this management team's ability to navigate through a difficult situation without further diluting shareholders in a very significant way. Linda Powers is comfortable as a fund manager, more so than an executive of a public company...that much is obvious just based on how poorly she responds to shareholders.
When considering the risk and uncertainty, and the potential impact this could have on the stock price, it seems perfectly reasonable to me that they get on the phone with their investment bankers and at least explore the possibility of selling the company. That doesn't mean sell the company at any price, nor that they shouldn't take into effect any information that they come into knowledge, but it's a very bad idea for them to just roll the dice that everything will turn out fine for investors.
$5 a share is my threshold for this level of risk, and each investors (including Woodford) will have their own thresholds. Exploring what a willing buyer would pay for this company at this moment in time is probably something that Woodford and the fund investors a Toucan would find useful to know. And I would submit, that would be something they owe to shareholders as responsible stewards of our investment,
There's a special place in Hell for those that knowingly lie and distort the truth that lead to the suffering of others.
Honest debate and different perspectives are one thing, whether right or wrong, but to engage in a smear campaign for some unknown agenda is the product of a disturbed mind.
The bottom line is that the Toucan fund investors control the company. Woodford might resist at that price, or maybe not if he has to address concerns from his own investors to get out with just a modest loss and the option to re-deploy those funds elsewhere. Woodford is a fund manager too. He has to answer to his own investors that see one of their stocks reprice its long dated warrants at $1 a share. That's very much the context.
I'm on record that management should seriously explore the option to sell. There's nothing to lose and they could always pull back if they get positive news from the FDA. But at the moment, management just appears lost in terms of understanding their own circumstances.