It is a time for careful consideration.
The first assault came from a very new poster on RB (2) posts who claimed things were up. Tony Tox asked about it. A posted conversation ensued. Followed shortly by "the letter" from the PHD with no verbal or spelling skills. Many "new longs" (not longs of LONG standing) shout abuse and horror. (Our buddy Roger the Swiss opted out at 5 cents, but I don't include him in this broad brush). Now the noise raised by the "violated" investors, encompasses not only a change of accounting firms, (from local sized firm to regional sized firm) but treatment of employees who left the company months ago. Are they disgruntled? Who wouldn't be! Did they leave with shares in the bank? I don't know. Do we have a case of Business vs Science? You bet we do.
We all know DNAP has been on a tight budget, and most were hoping that the shares sold during the LA notoriety period would allow funding for continued operation. Shares have been bought and sold throughout this time frame and to my eye, have been in keeping with the spirit of the current laws that look glaringly on oportunistic "dumping" of shares by insiders when good news or bad news occurs.
The previous accounting firm required a "boilerplate" about continued operation. Was this a big surprise? The company entered into a private placement for additional funding. Did this change the expectation of remaining in business? Did LA and the increase in shareprice change it? So I guess you can argue the point, but most of us have to take out a mortgage or a car loan when we make a major expenditure. Same for a company. If we declare personal bankruptcy in the first few years the mortgage holder will lose money. If a company doesn't have the wherewithall to continue operations, or the expectation, it is the obligation of an honest independent accountant to state so. As I recall, this statement has not been included in recent filings.
Ahh the letter. Could be, but everything about it is tacky. Giving it veracity and acceptance as true, it says an ex employee is peeved at DNAP for not providing him health insurance and suitable pay for the period before he left. He begrudges the management team the "expenses" of being a management team. He decries the lack of funding for lab necessities??? (Couldn't quite understand that section) and "other things".
Okay. I'll buy that. That's his take on things. My take as an investor is different. I see the company operating on a shoestring budget and clawing for every penny to continue critical paths. We all knew this from the "boilerplate" warnings and the continual sales of shares. We saw the company shift focus from drug/dna interaction and promote Ancestry and Witness. We saw money here for DNAP and felt the cash flow problems would be forestalled. (No one likes a lazy robot! If it can work 24/7, it should be in use 24/7.) So now we do paternity too. And probably pet projects, (GMED) etc. If money is coming in to defray expenses, and it doesn't change the big picture, I'm happy.
Now the management staff has been in action. For about a year, and in some cases just a few months. The Private Placement has gone out and it appears many faithful longs have divested themselves of DNAP to purchase into the PP. Major shareholders, who feel the price protection built into the agreement is more attractive for a million share holder and they are in a position to act on this because they are not Joe Blow with 50,000 shares at market value.
So we have this private placement coming due soon, and shares are possibly assigned to the units based on an average price for x days before the closing, and we have all this broohahhah occurring. Seems like normal cutthroat business to me. Imagine being in a theatre with 2000 other patrons when someone yells fire. And you feel the heat. And you see the flames. And a person near you is on fire. Do you help the Grandma with the three kids to the exit or you jump, scramble and claw to get your butt to safety? Now in this little scenario lets put the basher crew holding up a magnifying glass to every perceived inequity and fault they can uncover. Yup! Fear Uncertainty and Doubt. And then let's add a few miscreants who decide to pour gasoline down from the balcony. Now the "fire" isn't an accident but a contrived happening. No one knows who poured the gasoline, but the theatre burned down and many are destroyed. So they bulldoze the charred ruins and build a gambling casino with the insurance money. You Lose.
Now I don't think that anyone would go so far as to try and pour gasoline on a fire, but I do think they are quite capable of fanning the flames in a desired direction. We can all rest assured that a number of posters here and on RB are acting as prime movers and others are unwittingly aiding them. It's got to be worth a lot of bucks to someone or else the concerted effort of the last few days would not be being made. I believe this effort is directed at the private placement and the share price at close of the agreement. Look at all the new posters, and the return of some "old friends". Look at some new friends who are now sadly forced to condemn the company they have held dear for two or three months. Oh yes. Take a look around you at who is fanning the flames. It is unfortunate that the allegiance we profess and do provide for each other in due dilligence is merely a dim shadow through the veil of darkness being swept around DNAP by some parties who are playing for the real big bucks. I truly believe this is manipulation at it's best. I think we have sleepers and consorts we don't even know yet, but this weekend we will see more and more of them spreading the new gospel of FUD. Just my humble opinion, but I'm just one of the hoi poloi and not worthy of consideration.
Stakddek
Whopreferstobetheonlyonedoingso.
