Replies to post #5319 on Cytodyn Inc (CYDY)

[5TOP]

Maybe. Maybe not. Increasing authorized shares wont change anything. They will need to make an offering. To see a major decline (to say the .80's or .70's) the offering would need to either be at a substantially lower price than the current share price (like in .80's or .70's) or it would need to be a very large offering (over 50mil shares) at a higher price. I dont see that happening. There comes a price where it just isnt worth it, under any circumstances, to make an offering if you have other options available. I think they will borrow before they offer at this price. Especially when a low offering would put insiders, on the board, and other warrant holders under water. This could very easily be worth $5-10 next year depending on how everything plays out with new data and FDA developments. Making an offering under $1, when the current fair value is 300-400% higher and there is a high probability of realizing that value in the near future, would be unnecessary and detrimental, in my opinion. I know, longs that are waiting right now to add or who have sold out and are waiting to buy lower, dont want to hear that. But reality is that CytoDyn may have enough cash on hand, depending on how trial costs are structured, to last until the end of this year and a lot can happen in that time span. Its also important to note that we have already been paying for these trials. Its not a huge looming expense that we have coming to us at some point in the future. Yes, we have future expenses but the $33mil they raised in February and the $4.3mil in May have been used to pay for these ongoing trial costs (and of course other expenses as well).

On a side note but relating to the price/action. It has been very encouraging seeing the selling drying up lately and the buying resume. It has been particularly encouraging but not surprising, seeing the support around $1 and the lack of selling under $1. In my opinion, unless one of the two offering scenarios I mentioned above takes place, I think we have seen the lowest we will see.