SPCEO1 wrote: Personally, I find the leadership of TH to be a pretty sensible lot. The track record of that team, outside of commercializing their drugs, is actually kind of incredible. They took next to nothing to start with and somehow now have two huge shots on goal in NASH and cancer without spending very many shareholder resources to get to this privileged spot. I have been a very long term bull on TH and a loyal shareholder almost to the point of stupidity, but even I would not have imagined they could pull this off. They deserve a ton of credit for what they have accomplished on NASH and cancer. If only one of those two shots on goal work, we should all end up being very happy indeed.
I am not sure exactly how that has not translated into a much higher stock price, especially in the midst of a bull market in stocks just like ours. It really does not make much sense as so many other lesser company's stocks are doing so much better. Clearly, the company has some egregious shortcomings in the area of shareholder communications. Many have highlighted examples of this and I could have highlighted even more but have chosen not to. As exceptional as the company has been at creating two potentially huge clinical programs, both of which seem to have a very legitimate shot at long term success, they have been equally bad at creating shareholder wealth on the back of those successes. I mean really, really bad as we all know all too well. Now, while we do know of some basic failings in their shareholder communications that may explain some of the sock's problems, the travails in the stock price have been so extraordinary that I struggle to find anything that adequately explains it. I mean, just about every other stock in the entire world seems to be selling for well more than it should right now. I am not sure how TH got excluded from the party but it clearly did.
The fact that the stock has somehow performed very poorly in the midst of the massive bubble and during a period when the company had a lot of very good news and really no bad news is a big problem for the board of directors. Ultimately, they are responsible and there is no way of talking around this admittedly bizarre situation. It has been an ongoing problem for some time and their attempts to address the issue have thus far fallen flat on their face.
While it is great that the board has overseen a huge transformation of TH from a small company with two small HIV drugs into a phase III NASH player and a very, very intriguing cancer play; it really does not matter much if the share price never reflects that. The board has failed if the share price does not reflect the good things they accomplished. If we were in a bear market and that caused the stock to not react, that might be excusable, but just the opposite is the case which highlights this failure even more.
And then, they did the incredibly bad share offering. It was bad in literally every respect and yet the board approved it anyway.
So, given the above, what is a loyal, long term shareholder supposed to think about this board of directors? I am very open to hear a defense of the board as I would actually like them to succeed (as best I can tell from my limited interaction with some of them over the years, they are very nice, intelligent people). If they don't get their act together fast and get results, how can I justify voting in favor of them remaining on the board? I want to vote for them, but when the time comes to make that decision, how can a fiduciary like myself ignore the reality that stares at us everyday? Whe Paul joined he said he was going to demand accountability and we applauded him for that. We are fast approaching the time when the board may need to be held accountable as well.
jeffm34 wrote: That's just the way business is done there. It's a closed minded, we know better than everyone else attitude and they are more than willing to shoot them selves in the foot than admit otherwise.
It would need a change of business culture to cure this, meaning major changes on its Board of Directors.