I said $3 a share...pretty close then
That was my "call" if this deal eventually goes bust after multi rounds of extensions, drawing it out as far as possibly March, all while OCATA is smoking up $6 million a qtr in cash, while progressing little, if at all.
If that's what Ted is saying, aka $2 bucks a share on a failed Tender, I can't say it's far fetched in the slightest IMO. The overall markets have taken a royal pounding, with no end or bottom in sight yet. Global recession is pretty much in the cards now. Global capital markets are thus gonna dry up and go tight, real fast like. The bio-techs, especially the no-revenue speculative stuff, have taken the direct nuke strike level pounding. Hammered is being too kind. So they're gonna be on the ropes X10 vs whatever the Blue Chips get in terms of a hammering. Even freaking Amazon and Netflix and the other high/no P/E golden kids are finally getting pounded and likely heavily shorted now- as the market turns South.
So I'd believe ole Ted, in that he's looking at OCATA's dismal $28 million warrant laced secondary during the raging bio-tech bull of all time, their present low cash position, and now looking at their cash burn rate as their trial(s) sit with the parking brake on, going nowhere fast as they smoke cash off their balance sheet at a furious pace.
And he's saying $2 bucks a share in short order if the lose Astellas- as he knows they'd be going back to some form of severe dilution funding for survival, by June at the latest, and we're gonna be staring at Feb here, faster than one can blink.
I think he's giving it straight up, on the "money" so to speak. Totally believable and realistic scenario to me.
Posts contain only my amateur opinions, personal views and thoughts. I discuss stocks as a hobby only. Always do one's own due diligence before investing.
