Replies to post #2780 on Enanta Pharmaceuticals Inc (ENTA)

[dewophile]

This 200M is a special kind of debt bc of the virtually guaranteed coverage from the royalty stream. If the fund who “loaned “ the 200M doesn’t want to assume the “debt” of enta goes belly up any number of suitors would take on the debt for the royalty in whole or at 90 cents on the dollar in a heartbeat.
So in this case the lowering f shareholder value because of this accounting maneuver is not as relevant as it normally would be IMO
Good for you in timing your sale. Happy thxgiving

[alertmeipp]

Not going to sell any at 11 or 9. The company has potential to worth much more - and with potential buyout, settlement, partnership, upcoming

With the cash (~15and royalty steam - it has next to zero downside risk in term of terminal value.

[Rocky3]

From Fall 2023:

annual decrease in shareholder equity - down to $216,735K from $321,334K last year. With the decreased expenses projected next year, the reduction should be less, but if the loss from operations is still $80M, instead of $133M, net worth might be ~$135M after 09/24.

Actual number as of 9/24 for shareholder equity was $128,814K. Again, expenses should be lower in next 12 months since at least lawyer fees should be reduced since appeal should cost less than preparing for trial. But by 9/25 shareholder equity will probably be around $50M. With "debt" being non recourse, probably won't have "going concern" issue for a few more quarters after 9/25. But pressure to partner/sell/refinance will mount each and every quarter. And whatever bargaining power they have may disappear.

With tax loss selling season over, let's see if we get a stock price bounce in next couple weeks. If not, no real reason to think a turn around will happen until the partner/sell/refinance occurs. I am not willing to take that risk now. Those who think that the only possible direction is up were often saying the same thing in late 2023 when the price was significantly higher than now.