Replies to post #4679 on Momenta Pharmaceuticals, Inc. (MNTA)

[MTB]

And we thought jbog was dour . . .

I appreciate your view from the top of Mt. Olympus.

MTB

[jbog]

Momenta could easily use $75mil of their cash hoarde and announce that they'll buy the 4.2 mil shares back on the open market. The $75 mil won't be missed and the buyback would lift the earnings per share by about 10%.

Maybe this is the fire that would make the street sit up and take notice. For Mnta's management to only pay a $15 million dollar premium at this point would more than be rewarded by the street's impression that Momenta is confident in its future.

Will they do it? No friggin way.

[GrthzGd]

Tennisman, any chance you'd be willing to model the dollar amount of a "low double digit" royalty?

[oc631]

You liked his question asking about a share offering almost a year ago? The Company gave its reason for the share offering back then and if you read this message board you would see it was also answered on this board as well. Completely irrelevant question to ask today.

The question was outdated but I myself was never satisfied with the answer the company gave on the timing of the offering. Most investors during that time period were focused on T-Enox approval and the offering was taken as a "no confidence" vote from management that they would retain sole generic status. Thinking back on it now I've come to my own conclusion about management's decision which IMO should still be considered a mistake.

A month after the offering it became apparent that Sandoz had no intention of continuing to partner with MNTA in the FOB space. This event, unknown to investors at the time, was the reason the company raised money at such an inopportune time. I think MNTA is a good value at this level but I don't have a lot of confidence in those running the company on the business side.



I wasn't the good old boy asking the question either.

[GrthzGd]

Well, it was the first time I heard Shea admit that they were actually cowed by Teva's ridiculous assertions of imminent approval last fall. Otherwise, I agree there was nothing new in Shea's answer.