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Replies to #46446 on Biotech Values
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poorgradstudent

05/10/07 2:14 PM

#46447 RE: 10nisman #46446

DNDN / Financing:

There is definitely something funny there imo.

I do think that a large financing after the panel meeting would have been difficult to do without a large discount. Any bank would balk at the risk of buying ahead of the FDA decision, given the turmoil surrounding the panel meeting. Ultimately it would have been good for the company to do a financing, but Gold would have had to put up with screams from the shareholders for a few weeks as they digest an offering that had a 25% discount in it.

The insider selling clearly made an offering harder to pull off. But what is suspicious here is that only 1 officer of the company took advantage of the trading window. This seems like too great a profit to pass up, so I have to wonder why not another single officer executed even a token sale? I can't help but think that Gold was advised against opening up a trading window, either due to the perception of impropriety or due to some info that the officers had in their hands. Gold didn't seem to be influenced, but the other officers certainly declined a 200%+ profit for some reason.


* I realize two directors made sales as well, but i'm usually of the opinion that directors have little inside knowledge as to what is *truly* going on in the company. I think that directors are more often than not the source of the hazy insider info that is dribbled out to the message boards.