Synergy Pharmaceuticals Sees Exodus In Institutional Ownership As Management Ignores Dilution Fears
May 24, 2018 6:29 PM ET | About: Synergy Pharmaceuticals, Inc. (SGYP)
Jose Solorio
Summary
Management failed to provide assurances that among all of their strategic options dilution was not one of them. Institutional ownership has dropped from 72% to 44.4% in two quarters.
The hiring of a proxy solicitor firm was interpreted by the market as a sign management is just paying lip service to investors but set on continuing with current strategy.
The rally that ensued after the earnings report quickly faded after the proxy solicitor news.
Trust is so low on management that investors question and interpret every move done by the company as negative. Granted, they brought this upon themselves.
The activist group - though ignored by management during the conference call - now has 28.5 million shares pledged.
Opti
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