Ayala Pharmaceuticals Inc (ADXS)

[fbg0316]

You're more confident than me that Dan is managing the company with shareholders interests in mind. IMO what happened after the Amgen deal was eye opening. The Amgen deal reset the stock price and valuation up to $16 and it was trending up so could have moved up to fair value in the $20s. Then a week or so after Dan had already collected $65 million from Amgen, he did a dilution that put downward pressure on the stock which culminated when he issued management options at the low strike price that resulted from the post-Amgen deal dilution. The company didn't need the cash, so why do something that knocked the stock back down to our low current valuation? Because if he didn't do the dilution, he would have had to write his management options at a strike price between $16 and $20. So it now looks like we will probably see a deal on AXAL that involves the partner buying ADXS stock. No way the company needed to raise the extra $30 million a week after the Amgen deal. Don't get me wrong, I'm optimistic we will see a deal that will reset our valuation up around $20, but I'm less confident in what Dan does afterwards. What's encouraging is that Dan grabs him management bonus awards at the end of the fiscal year, so maybe we won't see that kind of conflict with an upcoming deal. I just hate that with the current CEO these type of considerations are no doubt part of the way he operates IMO.