chinatown1980,
The first reverse split happened way before the company had a registrational clinical trial in place. They were still learning basic science about DCs. In other words they were pretty much just practicing with DC maturation, activation and use. Investors in biotech need to know these things before they invest in any tight grouping of biotech companies or at least understand that 8 to 9 out of 10 early stage biotech products/ compamies are likely to fail which is the basis for Larry Smith's stated investment strategy in biotechs. Within the time a biotech goes public to the time they fail or succeed they burn through cash. Long term biotech investments from inception can not hold their worth during this period in most cases unless a source of income can be generated through partnership(s) or other means and even this is often not enough to maintain or increase worth during this period. Partnerships often rob promising technology of it's long term value, though, as partners generally are positioned to take over financially weaker counterparts. Such was the case with Entremed and Celgene and many others. While long term holders of this type of stock often do not do well in the interim, traders are able to take advantage of financial cycles and with NWBO these cycles have been much shorter than the average biotech since most try to finance for at least one year at a time and NWBO has not done so even when prudence and perhaps responsibility indicated that they should. This leads me to believe they have a plan to cover this prudence and perhaps responsibility even if only from an ethical rather than legal viewpoint. The insinuation of selfish motivation by management in your post points to a very different view of their motives and character than I have.
The second reverse split did not really hurt the share price at all that much. In fact, the share price jumped while shares were being bought and sold by brokers and retail was basically sidelined for the day. When everything settled down there was a little correction, then listing to NASDAQ some more correction for financing and then eventually a huge price rise when Mr. Woodford invested. That reverse split did not hurt those who bought as I did in the pennies and then added after some more correction for finances then sold in that rally. The second reverse split can not be sold as a negative except to those who bought high and even at those prices I believe this stock will make that look cheap based on what Direct will do.
Now as to your predicted next reverse split, I guess that would make this latest investor look pretty dumb for putting up so much money just to wait for price depreciation and a reverse split if that was going to be something negative right? Maybe you can answer me thus question, with so many outstanding shares available why are there only about 1/6 to 1/3 of 1% being traded on a daily basis and the legal short position relatively low? Best wishes.
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