RE:RE:RE:RE:RE:RE:RE:RE:ExcellentC'mon man! You are setting up a bunch of arguments that are not actually being made.
I have pointed out already that 10-15% dilution is what I thought was likely but we got 30%. Everyone hear knows TH is not Berkshire Hathaway but it is not like they were dead broke either. And I feel like I can say with 100% cetainty that Warren Buffett would never had agreed to those financing terms with the set up the company has right now. I not only praised the company last week, I praised them today for what they have accomplished in the last two years. But I also am not going to be polyannish and suggest that this deal built upon those previous successes.
It was a dreadful deal. TH is not going anywhere and it probably would be smart to buy it here because the opportunities they have in NASH and cancer seem legit. But even a polyanna has to be a bit concerned when such deal terms are put forward as they reek of desperation not strength. Is the NASH opportunity not what it has been sold to us as? Are all those six experts frauds???? How is it that our management team was willing to sell shares at a huge discount to a stock price that was already at a massive discount to its phase III NASH peers???? Why are we supposed to be happy about that? Yes, there is dilution in biotech and we had accounted for that, but this level of dilution is enormous. And there was not much a chance of repeating 2012 either unless both products suddenly stopped selling and the cash position somehow evaporated overnight.
It was a really bad decision to do this deal unless they have some unknown benefit they are about to reveal from it.
1998novl wrote: Thanks JFM, always enjoy the insight.
I think many on this board including SPCEO are confusing TH for Berkshire Hatahway or some other massive conglomerate with significant earnings. When you are Biotech, you get diluted. Why is that so hard to swallow? The only thing that comes to mind is most don't have the funds to increase their position by 32% today. Last week they praise the company for rolling out 2 FDA approved programs and increasing sales and today they forgot that and don't want to increase their holdings by 32%, but rather sell. Seems backwards to me. I get it, dilution sucks, but welcome to Biotech.., how that's surprising to so many posters here is shocking to me. Maybe you didn't know wha let you were buying and that is compounded by the lack of trust you have with management. Whatever it's is, TH isn't going anywhere. If you complain the stock could have hit $40 and now will only make it to $28, tough luck! We are also not going repeat 2012. Smart Money buys on events like this.