Replies to post #10847 on Ayala Pharmaceuticals Inc (ADXS)

[fbg0316]

I believe long-term holders like Adage are giving O'Connor the benefit of the doubt because they believe in the platform. I think they are waiting to see what kind of value and deal O'Connor can deliver on our most advanced program - AXAL. I give it until the end of this year and if he hasn't delivered a significant accretive deal that drives our market cap and price back up to $20-$25 pps I suspect Adage, Broadfin, etc., will step up and pressure for a change in leadership. What we are seeing now is time decay - while we have progressed, our advancements and business plan has not kept pace with the competitive immunotherapy landscape, hence our stock price and market cap have suffered. We need a big deal with Astra Zeneca to get us up to fair value. I having a feeling the wait will be worth it, because frankly O'Connor knows his job is on the line. From the language in the press release today, I think a deal will be announced in the next couple months.

[ignatiusrielly35]

Bourbon, I have become convinced that Adage and the other tutes put up with this ludicrously low market valuation because: (1) they are in it for the big score, and do not care much about short term pps; and (2) they are earning 20%+ in interest on their shares lent to the shorts, which does not impair their ability to capitalize on the big run when it happens (i.e., they still own their shares). Best of both worlds, for them. In addition, I think the street knows that Adage etc. are quite content with this and will not rock the boat, for now, so the traders feel safe. Adage may want the shorts to maintain their positions so that they continue paying interest. As a collateral benefit, when Adage wants to it can easily orchestrate a squeeze by simply recalling its shares.