Speaking of CPXX, I only have the regrets that I should have bought more, but then again who knew, right? good luck to you and thanks for the good posts.
I like the way you're saying things. Not because I have snta shares, but for how you conclude your theory. Agreed and well said, Bio.
High volatility, which is the great sign showing this stock is alive and getting lots of attention. One interesting thing we can guess looking at the trading pattern is that pretty much all types of traders are into this right now (day traders, swing traders, longs, shorts, new acquisitions or accumulations, profit takers, averaging downs...) When this happens, usually it means the possible surge to the next level. Based on many of us on this board were forecasting that happened and happening, breaking through 200 ma ($0.47) looks very near. As I and many others had said or agreed even before the merger announcement, anything under $0.60 still (even more now) looks very healthy and profitable entry point. I'm not sure whether pps will go up again tomorrow, or slight pull back or sideline, but it certainly looks like it will go on the path of J-Hook pattern. Somebody who posted here a few days ago said he needs 7 times of the current pps to break even on his investment he made in year(s) back. At this stage, I'd like to say who know whether it will be done? Do you remember what happened to CPXX? Anything can happen. I wish many longs who trusted Snta can recoup and be profitable again. GLTA.
Sentiment: Strong Buy
Gosh, don't you hate it when the weakhands and profit takers act too early? Stock Trading 101: PATIENCE
I spot not much of the short manipulation, but sensing some profit takings by weak hands and the day traders. The day will end with well over 100-day average volume which is very firm. I am not much of chart technical guy, but I can see the upswing thru the week.
PPS is moving upward again today (Monday 4/25/16) as predicted, this time with some volume building up. Looks like it will break through 200 sma this week. If so, having the new support 200 sma level, it will make a trip to reach $0.55 before the earning report announcement, and then start advancing over to $1.00 after the earning report depends on how the market appreciate the future of new company. At this moment, any news, announcement and even simple notification can stimulate the upside move of pps because it seems like there will not be any real bad news to come out. I feel like I am in an IPO stock (Literally, that is what we are dealing with.) Best luck to all of us.
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I had a chance to talk to a person I know about SNTA, whose full time job is stock trading (not security broker, but he is heavily investing in many biotech and pharmaceutical companies), and his near term prediction was same as yours. One thing he went further was that there is a possibility for the share price go back up to pps level before the phase III trial termination which is over $2 after 200 sma ($0.47) breaks and if the company decides to extend the delisting deadline to Nov. 30th by temporarily switching to NASDAQ CM, instead of doing the reverse split beforehand. Just one person's opinion, but if makes a good sense considering the fact Snta's (or Madrigal as a new merged company's) research pipe line will be fill with the new trials as if the company is a brand new company in the stock market, and actually it will be the new company. Just wanted to share what I heard...!
Agreed. As you said, minimum of $37.5 cash in the worst case plus the combined current assets of two companies will certainly provide the new company with a very strong initial base. Hopefully, we can find out more during Snta's 1st quarter ER.
What you and others here are saying sounds good for the future of the merged companies. I need a 7-bagger from here though to break even............lol!
Since there has been no mentioning about snta's existing clinical trials, we can only guess right now. IMO, they are being mentioned because they are in the course, OR the companies (snta and madrigal) are currently examining to see whether to continue or not? Either way, the new focus is on madrigal's clinical trials not on synta's. May 5th earning report & cc will probably tell more about it.
I emailed snta's IR asking what is the asset (total and net) of Madrigal, but no answer (I did not think I will get the answer anyways.) Well, Madrigal can have surprising amount of asset or possibility of not. However, rather than the total (or net asset), what is truly count in biotech/medical research/pharma is their actual cash/cash equivalent position. I'm sure Madrigal has some plus $9 millions committed to be invested. In the worst case, supposing Madrigal has absolutely no cash/cash equivalent, the new company will start with a minimum of $37.5 millions ($28.5 mill of minimum cash requirement from Synta as a merger condition - I think there will be more, and $9 millions of new investment.) Even with this worst case scenario, it is actually not bad to start the new venture with that kind of cash because they will able themselves to the immediate cash by public offerings of new shares after reverse split without impacting the shareholders' value and interest. The new company can truly be a cash rich. This is where I give the high grade for this merger plan because it creates the win-win situation not just for the company but for the shareholders because we don't need to be anxious, angry and worried all the time about discounted dilutive offerings all the time. Let's say they do 1:10 reverse split at $1.00 pps, then the outstanding shares will be about 40 million shares more or less. Hypothetically, now at around $10 pps, issuing 60 more million shares will easily fund them $600 millions. The merger is engineered to provide the necessary funds for many years without scaring off the shareholders and investors until and beyond the phase 3 stages and approval processes on their currently tested drugs. The questions is whether the drugs will be successful for commercialization? Well, it is too far off to think about., but in the mean time, we can invest, day or swing trade, or whatever we do to make some great profit. Best Luck To You All.
Just a question I'm up to date on everything with the merger and lease termination but does this mean we're done with snta last remaining clinical trial results?or are we still waiting for results good or bad
Another enhancing news, this time about the early termination on Synta's leased business location. (Original lease expires on November 30th, but agreed to early terminate and vacate the space by May 1st.) First of all, this news confirms that the merger plan is proceeding on the schedule as some people were skeptical whether it will really be completed. Also, this news self-answered many investors' concern about what Synta will do with its current facility because the annual rent payment of over $365,000 that adds up close to $1.1 million per quarter was not the amount that can simply be ignored. As per their merger agreement, they will now, if they have not already done it, try to secure a new real estate premises in Philadelphia, Pennsylvania to use it as the merged company's new location (headquarters). Good thing that the current locations of Synta (Massachusettes) and Madrigal (Pennsylvania) were close enough to each other that it will be economically affordable to move all the testing equipment and F.F.&E. As we all know, Paul Friedman CEO/Chairman elected for the new company was resigned from director position at Synta as of the day of merger announcement, so most likely some of Synta's existing employees are in the process of relocating and some are resigned. We don't know yet how many researchers and general employees Midregal has at this moment, but they will probably not hire any more new ones, not for awhile. Overall, this new merger plan will eventually save some overall overhead costs. Lastly, Synta's balance sheet shows they have about $420k worth of equipment and $1.21 million research/test related assets that the new company may not need to purchase any new ones, once again, at least not for awhile. We can safely conclude that this merger is a very successul one. Good luck to you all !
Very impressive. One of the very few who has this type of experience background in the industry. I can say the new company's future is bright considering many companies had ruined the maximum potential of shareholders' interest because of the lack in management's mishandling of various volatile situations.