GTC Biotherapeutics (fka GTCB)

[DragonBits]

I could see where management might not care about the current price of their stock or any dilution, as long as the company doesn't go BK. As long as they stay solvent, I believe there is another run up in the stock.

I would have a backup plan of financing already in place in the event I needed it. The price per share wouldn't really matter all that much.

For instance, if they get 10 million at 30 cents per share, they did do a 1:10 RS and the stock sank to 2.00, management could give themselves new options at the 2.000 strike, they could also reprice their old options.

The stock could go up 10 times from 2.00 to 20.00, which would be like 2.00 in current terms. They could sell their cheap options and take a loss on their older stock that they owned above 2.00 presplit.

As long as the company remains solvent, I believe management has a different point of view Vs long term shareholders. A gain from 2.00 to 20.00 would make all new shareholders thrilled, so the public wouldn't be complaining either.

I can't be sure at all of the prices either high or low or size of the RS, but I think something along these lines will occur. A financing, new partner, RS, sink down, then a recovery up that makes for a 3-10 times gain from the lows.