Replies to post #87931 on Biotech Values

[mcbio]

Re: ARRY debt

Horrible balance sheet and $60m barely makes a dent in their outstanding liabilities/debt.

Oh really? In what scenario is receiving cash equivalent to about 40% of your outstanding liabilities/debt (total liabilities are about $150 million excluding deferred revenue) not considered a "dent"?

Raising cash wouldnt suprise me going forward to pay down debt - many companies will be issuing equity to pay down debt as many have stared into the abyss of potential ch 11 and I think that like households you are goign to see a continuation of the delveraging - especially in small garbage comapnies that have feast or famine relationships with investors and credit markets.

Inasmuch as ARRY management delivered on the big deal for ARRY-403 (and correctly called the flurry of biotech deals we've seen so far in December), I tend to believe them when they say they have another deal coming in the near-term (ARRY-162 most likely), and expect to receive an additional $80 million or so in 2010 in partnership funding. All told, they are in a good position to avoid dilution, or at least significant dilution, in the near future.

[tony111]

I am not surprised it traded down. That is not what I find confusing. I have been waiting for the right time to buy and I really thought ARRY was going to close the gap based on today's action. What I find confusing is that in the last two trading days light trading volumes drove it down in the morning just to have heavy buying later afternoon. However, it seems like the buying was gone today and was dominated by bears. Thats why I asked whether there was a rumor of dilution.