Avid Bioservices Inc (CDMO)

[Protector]

ImaP, blushing may be over the top, but you certainly have a point here.

This is a good example of derived conclusions that go wrong. The ATM wasn't used any more so in Jan 2014 one could conclude they stopped using it. I myself followed that reasoning and was quite confident about it.

However, facts show now that the ATM was used in JAN 2014. So after it was stopped they started it again. I posted before and will not hide the fact that I am surprised they did. I do however like that they did it at an average of 1.75$, which is much better then before, but still a give-away.

While I am in general a positive, I am also an objective. What troubles me MORE then the usage of the ATM itself is the fact that the pps did not noticeably suffer from it, but it will have stopped us from capitalising from the fast track news as of 1.86$. That means the shares have probably been transferred. In other words ATM sold into a known buyer (with Bid/Ask locking).

For me this throws a completely different light on the CNBC mentioning. We know PPHM doesn't have the means, nor contacts, nor corporate profile to push itself on CNBC. So, someone else must have done that and if you map yesterdays ATM SEC listing to the charts then I wonder if these transaction would withstand a SEC investigation. Actually the NON USE of the ATM for a given period now suddenly becomes suspicious to me. Was it planned knowing upfront about the JAN action.

Now let me be absolutely clear. If the above SPECULATION would be correct then I do NOT believe it was done because of any PERSONAL gain of BoD/Management but as part of the many techniques, questionable or not, legal or not, ethical or not, that are used in the markets and in this case with the only goal to get the company where we all want it to be.

This ATM use isn't even dramatic in combination with the preferred shares, possibly it could even add to PPHM obtaining favourable conditions in some preferred/common averaging deal. But it is and remains some dilution. Probably they have a view on the leverage they can get with Bavi and figured the shareholders will get more then they ever expected any-ways, but still.

There is however something else that troubles me and that unless an error occurred should at least raise questions.

How can they have 66 Milj$ dollar in cash end JAN 2014? They reported 44 Milj$ and raised 22 Milj$ (rounded) and that is indeed 66 Milj$

Now they do burn 7-12 Milj$ per quarter so there is about 2x9 (averaged) 18 Milj$ missing here. Avid can not be the source of that cash because that would stand for an extrapolated yearly profit of 36Milj$ and a turn-over of about 72Milj$ given they Avid claims about 50% margin.

So I am wondering where that cash came from and if the ATM has been used to help mask some other income?