DELPHI ENGAGES IN SPIRITED MUCL DEBATE:
From recent exchange of views:
(one side of the coin)
First of all, I would not prefer debt. Not even sure if
MUCL could get loans, but that's another story. I feel
as though financing via debt (if they could get it)
would put MUCL in even a more precarious financial situation, and my own personal preference is always to
look for debt free companies, so no argument there.
Without going into numerous details of the recent 2 and the
next financing, I have basically 2 big issues.
1. MUCL is largely a victim of it's past unsucessful
incarnations. I understand the difficulty of "Start-ups",
but most "start-ups" do not "start" with between 100-200
million shares. ANY future success as a company will be
minimized by this handicap. Also understanding that after
the next financing there will be in the 300 million shares
neighborhood on a fully diluted basis.
2. Both of the recent financings were (in my opinion)
on very poor terms, AND poorly timed, AND linked to
excessive option/warrant packages. NOT immediate dilution,
BUT they will serve as steadily chewing away at any per
share income and equity looking forward. Newmin picked
close to the bottom of the share price for these 2
financings, and it to me that shows 1 of two things.
either poor decision making OR consciously getting
the "new boys club" in on the cheap. Either way not a
good thing for the common holder.
(delphi's side of the coin)
Your post has some substance, and given that we all know what dilution is, we don't need the math just now.
But here's the thing. There is only one MUCL. It has its particular history. Can't be another hypothetical company with an IPO to raise money, that somehow owns these specific patents and the potential they offer. It may not be 100% lovable, but it looks pretty good assuming there might just be a PR or two coming out in March or April.
And here's the other thing: do you have financing numbers from companies in similar BB doldrums? Numbers that backup the statement that the previous 2 financings "were on very poor terms"? Sure, anyone can snipe at the numbers, (you don't want Roy in your camp, do you) especially with the pps almost 3x times the Dec. lows, but do other companies have a better record with financing when their's is a downward trending stock? Hard to find a "similar" company, I know. Any BB financing numbers will do.
And the final other thing: "poorly timed"? Last summer's $$ seemed just in the nick of time, given that the Xeno contract wasn't going to be kicking in more $$ until now. But the last one? Done when it seems a number of on-going programs are just coming into their own, not to mention the imponderable cooincidence of the contamination issue of embryonic stem cells being made public just as the financing was closing. And, the magic pill it appears no one was factoring into anything: no more "may not make it as a going concern" statement from the auditors in the 10K.
What does MUCL show NOW when it seeks partners, alliances, Amex listing? Every detail of the corporate structure in black and white, cash in hand, BIG potential markets with patents in place, projects progressing, and big pharma endorsing the Xeno-manufactured hepatocytes for toxicity screening.
Everyone is proud that Dr. Chang was part of the financing package and the 3 PRs on the same day. That's easy. What was he called: "a giant"? But I would love to be fly on the wall when Mr. C. is doing his thing finding companies to acquire or partner with, putting the AMEX listing in place, and whatever else he is doing behind the scenes right now. We on RB won't know the substance of his work until it is announced. But I doubt Mr. Newmin took on some lounge lizard as part of the package. My guess, he'll earn his keep. And anyone who is long as an investment, not a trading stategy, will be smiling along with the insiders.
And finally, look at the bright side of the dilution: (What bright side, even the faithful are scratching their heads wondering what body snatcher has taken over poor old delphi) You want a roller coaster ride, then you want a company with 5-20 M shares outstanding. You want a market where large holders can enter and exit without huge swings in pps, 200-300 shares provides the buffer. The market makers are providing that kind of market right now, holding in the low .40s. while nothing is happening and people trade in or out depending on their disposition.
all IN MY HUMBLE OPINION of course. The waiting just got a lot easier, because the next big thing will be positive.
AI
