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Well almost no one...as warrant holders are "buying" as low as $0.30, hold for 6 months, then sell those shares into the open market for a nice profit.
In fact warrant holder have the option to exercise immediately OR wait a full 5 years, but with the many red flags they sell immediately.
Price will be below $1.00 by 2022
I predict $CYDY drops below $1.00 before 2022.
Zero indications will ever be approved.
Greater chance $CYDY will be a $0.30 stock.
I agree. CYDY has a chance to be a 500$ to a 1000$ stock.
$0.30 appears to be the most recent toxic exercise prices.
Page 126, Note 11
https://www.sec.gov/ix?doc=/Archives/edgar/data/1175680/000155837021009730/cydy-20210531x10k.htm
Maybe it was in the convertible preferred shares that had the $0.25 conversion?
$CYDY has multiple threats to the value of the common stock in the capital structure.
This can be witnessed by the depressed common share price and probably sub $1.00 soon.
My T/A take is:
$CYDY has been in a steady downtrend from $6 to $1.06 since Feb 2021. There was a recent short term rally Sept. to Oct. from $1.30 to $2.50 which faded to today's price of $1.06.
$CYDY is the definition of a stock in a downtrend.
The first sign of a possible trend change will be for the price to break $1.09, the 20 day SMA and then the 50 day SMA at $1.22. Until that can happen $CYDY is in a DOWNTREND.
The support level is $1.00, if $CYDY breaks down through that level the next support is $0.80
The technical analysis for $CYDY is AVOID.
More toxic warrants...
Placement Agent Tail Fees Dispute Settlement
During the three months ended August 31, 2021, the Company and Paulson Investment Company, LLC (“Paulson”) settled a dispute in which Paulson alleged it was owed tail fees related to various placement agent agreements entered into in prior years. Pursuant to the settlement agreement, the Company agreed to a cash payment of $0.2 million and recognized stock-based expense of approximately $1.7 million resulting from the issuance of warrants covering 1.6 million shares of common stock at an exercise price of $0.40 per share with a seven-year expiration. See Note 6 above.
Per the latest 10-Q:
Warrants
In connection with private warrant exchange agreements entered into during the three months ended August 31, 2021, the Company issued a total of approximately 0.7 million shares of common stock in connection with the exercise of warrants for the purchase of 0.7 million shares issued in 2018 and 2019. The stated exercise price of the original warrants ranged from $0.45 to $1.35 per share. Gross proceeds of the private warrant exchange transactions totaled approximately $0.5 million. See Note 10 below for additional information.
Compensation expense related to stock options and warrants, for the three months ended August 31, 2021 and August 31, 2020, totaled approximately $2.6 million and $2.0 million, respectively. Additionally, during the three months ended August 31, 2021, the Company settled a dispute in part by the issuance of warrants covering 1.6 million shares of common stock that expire in seven years and have a stated exercise price of $0.40 per share.
The act of issuing warrants is not dilutive. Correct. However, warrant "exercises" are dilutive, and "toxic" when the exercise price is discounted to the market price.
As a $CYDY bookrunner I thought you agreed it was $0.25 with the comment:
True on CYDY debt swaps. Not true with Warrants.
Those prices range from 50 cents to 1$
$0.30 is my $CYDY Dec 2022 guess.
Correct, the devil is in the details as the problem for $CYDY trades is that new dilutive shares are added to the float daily by market makers accommodating the sell side order flow by warrant and debt conversions.
It's not the T trade that is the issue, it's the context in which they happen that needs to be evaluated.
As discussed, once the 6 month holding period is over for the shares acquired by executing warrants at $0.25 the shares are immediately sold into the float.
Say I had 200,000 $CYDY shares held for the requisite 6 months that I purchased at $0.25 from a warrant exercise and want to sell without dumping the shares to the bid. If I had a relationship with the broker/dealer I would place a "Not Held" order for the MM to sell as much as they can without dumping to the bid. This is called a discretionary trade order and allows the market maker to "work" the order. Once these "off the books" orders are complete they are reported to the tape as a "T trade"
Also explained here: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=167231728
Sure, the definition of a T-trade is simply a trade that is reported outside of the normal market hours and are often nothing special, usually a late trade report or manually executed trade that needs to be reported.
Trades marked as "average" are usually prearranged between 2 or more market participants to move large blocks of shares at a negotiated price such as the volume weighted average of the day
Accumulating large quantities of shares of $AVXL at ~$1.30 in December 2018 was one of the most aggressive and profitable trades of my life.
Long timers who have steadily accumulated as the science story develops, albeit with annoying delays and missed timelines but ZERO trial fails, have been well rewarded.
That would be my hunch too.
I would speculate these form T trades, done at the "average" price, are shares acquired below $1.00 (possible as low as $0.25 per filings) and held for the required 6 months, whose orders are "worked" by a broker/dealer and the final "print" for those clients at the average price of the day is reported via form T.
If this is seen regularly on an OTC stock engaged in raising cash through toxic to equity instruments always be wary of form T trades.
BTW, By giving a broker/dealer discretion on an order allows them to offer your shares on the ASK and not sell into a weak bid decreasing the price.
Good old "working" the book is from a bygone era, but is still "normal" on the OTC.
Sure, the definition of a T-trade is simply a trade that is reported outside of the normal market hours and are often nothing special, usually a late trade report or manually executed trade that needs to be reported.
Trades marked as "average" are usually prearranged between 2 or more market participants to move large blocks of shares at a negotiated price such as the volume weighted average of the day.
No big whoop right, a definition is a definition. But... in my experience when an OTC company that use PIPES, warrants, convertible notes, convertible preferred shares as the SOLE source of operating income the use of form T is often a red flag that market participants want to move large blocks without creating a market imbalance. For an equity financed company like $CYDY which is continually selling and diluting new shares into the market the use of form T can help to not overwhelm the bid side and prevent a sell side market imbalance that could drop the price more than participants care to do.
It's not the T trade that is the issue, it's the context in which they happen that needs to be evaluated.
An increase in form T trades on OTC is never a good sign. The 200k T trade was at the average price for the day.
If form T trades become a regular occurance it's often a bad sign.
Wonder how many baggies took the bait and bought today's PR.
"CytoDyn will soon be known as the giant destroyer."
$CYDY is already the great destroyer of retail bagholder finances.
Well first off ... a picture of level 2 isn't of much value to technical analysis.
$CYDY has been in a steady downtrend from $6 to $1.06 since Feb 2021. There was a recent short term rally Sept. to Oct. from $1.30 to $2.50 which faded to today's price of $1.06.
$CYDY is the definition of a stock in a downtrend.
The first sign of a possible trend change will be for the price to break $1.09, the 20 day SMA and then the 50 day SMA at $1.22. Until that can happen $CYDY is in a DOWNTREND.
The support level is $1.00, if $CYDY breaks down through that level the next support is $0.80
The technical analysis for $CYDY is AVOID.
$CYDY board director resigned to join Scientific advisory board.
I guess it's getting hot in the kitchen as officer and director indemnification only covers so much risk.
http://archive.fast-edgar.com/20211221/AN22B22FZZ2RDTZ222TM2ZYRBBKGYZ22X232/d275567d8k.htm
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b) On December 15, 2021, Harish Seethamraju, M.D., notified the Chairman of the Board of CytoDyn Inc. (the “Company”) of his resignation from the Board of Directors, effective immediately. He indicated that his decision was due to his other pre-existing professional commitments and not due to a disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Dr. Seethamraju has agreed to join the Company’s Scientific Advisory Board as an alternative means of providing his expertise in support of the Company’s strategic endeavors.
$1 or $100 a share, $CYDY isn't worth the risk period, as smart investment selection disqualifies it.
Don't short penny stocks either.
Smart biotech investors don't apply blanket hold periods. That's ridiculous.
I remind them of the agreed upon 5 to 10 year hold.
Operation BS is also in effect ... PIPE runners and paid promotions are always selling a story, but never the ones a real investor needs to know.
Operation anecdotal story is in effect since toxic financing and new 52 week lows are indefensible.
My $UNRV timeframe is quarter to quarter, as not enough data to speculate too far out, especially without cannabis banking.
I expect to see continued financial improvements quarter by quarter.
Same with a lotto ticket but without the "commish"... LOL
"All I can loose on CYDY is 1$ and a few cents plus commish"
At least with a lotto ticket it goes to our parks and schools, not a PIPE runners take down, plus a commish.
"if LL was a true miracle"... I will most definitely admit I was wrong if LL is approved.
I have "laid out the details on what happens" when all the hope and dreams and if's and but's continue to fail and that is New 52 week lows.
Unfortunately for long term dreamers the story is over, as $CYDY is out of money with very little too to justify its market cap, convertible debt and onerous preferred shares in its capital structure.
I understand how capital structures matter to the value of common equity.
$CYDY is at 52 week lows for a reason.
Unfortunately this education doesn't help $CYDY common shareholders.
It's stock selection that matters, and $CYDY is a financial disaster for common equity.
Thanks for the lesson on warrants, unfortunately the price keeps dropping on all these great "news" stories.
Wonder what entities may still be driven to sell with such great news?
Oh, I know maybe it's those "wart" people doing cashless exercises at an established discount, say $.50 and selling for a quick profit? I mean why not, they've waited the rule 144 holding period of 6 months right? It's a "free" flip.
Unfortunately this education doesn't help matters, as it's stock selection that matters, and $CYDY is a financial disaster for common equity.
Some additional reference material for those interested.
https://www.equitymethods.com/articles/understanding-warrant-dilution/
Operation doublespeak is underway.
PIPE running Black-ops type sales teams often only focus on part of the story, but the devil is always in the details.
Good luck with that... as the trend is your friend and the $CYDY trend is down with cause.
Markets don't give up value as easily as $CYDY gives it away to certain groups via discounted to the market shares and free warrants.
The market asked and that's why $CYDY is scraping 52 week lows.
The first question I ask any CEO or Pres. What is the Cap, the float, the restricted count, and the warts, the options, and all debt, preferred stock, and bonds. This combined Known as the companies cap.
Does issuing warrants at a discount increase dilution and the relative cost of capital?
Do unit warrant holders have an advantage versus common equity buyers in the open market?
EVERY BIO does raises funds via the PIPE method. PIPE investors are our allies, our fellow investors that share parts of our CYDY vision.
$CYDY is a perfect example of OTC level shenanigan's and I do love watching a good old biotech bullshit stock salesman like Nader in action.
Serious answer.
Warrantless holders of $CYDY paid regular retail, but the unit owners with warrant coverage past and present are doing fine.
The devil is always in the details on the OTC, especially when "mixed" security types are used.
LOL! They got "Fife'ed!"
Todays long stock selling warrant exercisers bought their discounted shares 6 month ago, and it's correct $CYDY does not have an effective SEC share registration to sell more shares except for under regulation D and rule 144 restrictions.
Wonder how discounted the next warrant holder deal will be? $0.25
Pathetic, simply pathetic, in reality $CYDY is the biggest SHORT of them all with a constant stream of dilutive discounted warrant and discounted from market price LONG stock sales.
Nader says "short sellers are really shorting their brain". He definitely is reading message board posts and tweets!
Death by a million cuts, I never said the term "massive sell off".
In fact, I've advised the warrant holding sellers to be gentle on the bid.
Yes it's legal to not have independent directors, but lack of independent directors disqualifies a company from NASDAQ uplisting.
The Big Pump is also very organized and the SEC has $CYDY executive confessions of manipulations too.
I'm relatively new to watching $CYDY (2021) and thus far I've yet see a reason to choose $CYDY as a holding.
In fact, I've recommended selling since May 2021 at $2.75 to preserve capital.
Assuming investors have researched their CYDY plan now for how you will sell very small %% of shares on the way up. The most difficult part of this journey with CYDY occurs as it makes new highs. Plan now.
"Notice how fast the discounted stock is being sold -- none of the investors getting discounted stock appear to want to hold onto it."
Yes I have, and have been commenting on it here as it's obvious $CYDY common equity is NOT an investment, it's a stock selling operation at this point.