Replies to post #59123 on Biotech Values

[tony111]

Blade the management is horrible and I will suggest you wait untill they solve the cash problem.

JAV cannot finish phase 3 and launch Dyloject without raising another 150 million dollars. This is not considering that they have to raise another 200 million dollars if they want to launch nasal K and morphine by themselves.

They could have partnered out Dyloject in US and get handsome milestone payments and royaltes that together with UK+Germany sales should be sufficient to put nasal K and morphine onto market without having to do more dilutions.

Instead they chose to announce a 60 million shelf. Thats basically telling all the shorts and interested instiutuion holders that we will raise more cash through stock sales. Keep shorting this stock untill it has to raise money. The cheaper the stock price the greater the dilution. All those shorts can walk away with big bucks or those institution holders get to hold JAV at a huge discount. What happened to those long time share holders?? We get a 20% cut on our share values when a dilution is announced and extreme pain seeing JAV being beaten down.

I am extremely upset today seeing JAV broke under 3. The last dilution was announced in 2007 selling common stocks at 6. I believe they did a PIPE in 2006 at a price around 2.5 dollars arnound october or November. Take a look at 2006's stock price action. The stock price tanked a lot and began to climb after PIPE annoucement. I hate to say there is manipulation, but I keep seeing an increase in short interest on biotechs that are running out of cash and up huge after a dilution announcement.