Management changes are a complicated issue.
I thought Cox and the management were very poor 3 years ago when I first bought GTC when it was running up on high expectations. Cox had GTC borrow money (previous to my buying GTC) to buy back stock from GENZ. I had long since sold GTC. Whatever the rationalization given at the time, small biotechs never buy back stock because they always need cash. So in my mind Cox was a GENZ lackey at the time or very foolish, neither of which is good.
But when management of a company that is at an all time low leave, this creates even more fear and often a drop, even if it is only short term. Also management have a greater incentive to sell their shares once they have left the company. Cox and mgt have established ties with potential partners, with GENZ, if they left all that would have to start over.
You might consider that no matter what management GTC has, the course of their stock would have remained the same. Surely Cox would rather have GTC be a big winner; he can only get the deals that others are willing to offer.
But in a practical sense, entrenched management is virtually impossible to remove, the typical response to bad management is to sell the stock and move on to a company where you like the management. Everyone complains about mgt when a stock is at an all time low, they never seem to question why they themselves own a stock at an all time low. I guess if you blame mgt you don't have to blame yourself.
Even companies with no chances of success will eventually double and triple in price at some price point, as we say, every dog has its day, and GTC does appear to have some great long term prospects, so maybe this is a great investment that is simply undervalued because of the cash situation. Either way it will eventually go back up, the only question is what is the best price to buy at?
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