Insmed Inc (INSM)

[ED20332]

Good post from rstor1


Forget the price for the financing!
by: rstor1 (46/M/NY) 03/10/06 07:16 pm
Msg: 75759 of 75799

The bellyaching that goes on here is f'n absurd.

The people that bought the offering got a great deal because Insmed was in serious need of funds and everyone knew that the longer they waited, the worse the need, therefore the price would be lower. The guys with the money had the leverage. I'm glad it was at $2 and not at $1.50.

However, the whole discussion is beside the point. We knew we were going to dilute. We knew we needed money.

Now we have cash for about a year, and the company will eventually be valued on the business potential. And if you don't believe that this potential is worth a multiple of the current price, you don't belong invested here.

What I am trying to say is that the difference between a $2 offering and a $2.30 offering is a couple of months of burn. It might mean extra shares offered at the next financing or, if sales really ramp, it might not mean a whole lot.

But now investors will be able to look at the potential without their vision blocked by imminent dilution.

If you sold today because of the price of the financing, I wish you luck, because you won't make it on brains. If you are one of the guys roasting Young for the financing, you have got to be out of your gourd.

Bob