I agree with you 100%. They wll dilute shareholders again.. Unfortunately I missed the short at 118. I was greedy and waiting for 120. Now back down to 100.
I don't have a position in this company, but the valuation is insane. Their drug seems to be good, but the market their are targeting is extremely small. I was going through their research documents and it seems like doctors have big issues identifying the disease.
Even if they get peak sales of $500 million in 2 years from now, which is a super optimistic view, their earnings would be about $300 mil. At $4billion that's a P/E of 13.3. I feel that the company is valued as if everything has worked out and have steady revenue streams. The risk/reward ratio is horrible.
That's my 2cents, let me know if I'm missing something.
Take a look at the date I posted, BOZO... Yes...I am a short. I did short at 120 and covered at 114 (stupidly.. kind of like you) and then again at 115 and covered early again unfortunately at 110 (again stupidly like you). I tried to short again at 107 but etrade wouldn't give me the shares short... I am not sure why.. So... I will tell you again.. This biotech will be worth nothing in a couple of years.. Looking for a short entry again... Will be back to tell you again.