I'll keep this short and sweet...Google "PennyStock101' signup for their free newsletter and get their next trade alert. Come back and thank me tomorrow!
that's what they said then too
can you lead me to something that shows it's just about over over?
will end any day now....great chance to make quick $$$$
also keep an eye on IDRA looks ready to run....
Sentiment: Strong Buy
1. Last I heard, short interest increasing is hardly a factor on whether or not a company can produce a revenue generating product. Completely irrelevant factoid.
2. "Dead man walking" for years is also relevant in that we all know that the company is now run by Shaulson as opposed to those who preceded him.
3. Indeed their product line pre-Shaulson is ALSO irrelevant because they were purusing a commodity as opposed to the now present specialized chemical strategy.
4. I stand by my initial statement that it comes down to whether or not Shaulson and company can generate a revenue producing product before their sources to capital dry up. I believe that they have a shot at doing so. Their senior management certainly has financial incentive to make this a reality.
5. What cannot be debated (add this to my list) is that in the event (emphasis on the the possibility not the certainty) that MBLX can make an announcement regarding a "real revenue" product that there will be a short squeeze that will be a train wreck worth watching. In the event (again possibility not certainty) that happens, we will meet again.
MBLX has been a dead company walking for years. Everything posted is available via third party sources online. The increase in the short interest is published by NASDAQ every two weeks and the facts are pointing to an accelerated increase in the short position of the stock.
The question in item 3 is valid to a point. Revenue is the easy bit as is evidenced by them having closed the revenue side of their business because the product being sold was not making any profit. The question is, "Will MBLX come find a solution to the high cost of production at a volume sufficient to generate an EBIT that would sustain the overhead, before the cash runs out?" There is no point in including depreciation or amortization into that question as there is no assets, other than the IP and they lease their offices. I suspect they may reduce their losses by not writing off their R&D or pilot investment, but that is papering over the cracks.
What is telling is that the most recent financing was a down round on the June financing, a minimum of 16% but closer to 55% for any issued since the announcement of the Aspire Purchase Agreement. It indicates the risk has increased, not reduced.
Don't know why you have such a jones up your butt with regard to this stock. It's actually a very easy story to understand:
1. These guys have a lot of promising intellectual property. That can NOT be debated because they would be out of business a long time ago if their intellectual property was inconsequential.
2. Another non debatable point....These guys have had an uphill battle with cash flow for years waiting for an event that will, as Shaulson has said, "create real revenues".
3. Whether or not this company makes it can be summarized with one question, "Will MBLX come out with a revenue generating product before all of their sources of potential financing disappears?"
4. Go ahead and short this. It's a dangerous game--such an announcement--if it were to come--would be material and by definition will come "out of the blue"
Short interest has increased by 20% to 881,458 since the recent June 2015 private placement investment. What is more notable is that in the last month it has increased by 10% from under 800,000 in mid-September to the 15th of October. This indicates that even after the Aspire Purchase Agreement that there is an expectation for downward pressure on the PPS.
300 million or more coming to PIP:
ANNAPOLIS, Md., Oct. 7, 2015 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT: PIP) announced that oral arguments in SIGA's appeal and PharmAthene's cross-appeal of the Delaware Court of Chancery's January 15, 2015 Final Order and Judgment in PharmAthene's litigation against SIGA took place in the Delaware Supreme Court today at 11:00 am ET.
Sentiment: Strong Buy
Buckorama, I strongly urge you to read the SEC filing document again. The Aspire Purchase Agreement is a PIPE, a Private Investment in a Public Entity. There are two types of PIPE, good and bad. The Good is where a large placement is made in the company at a discount to the market by a private Investment fund, Family Office etc., as in the case of the last two funding rounds. The Bad is where a hedge fund, such as Aspire (who are not the only hedge fund operating in this manner), agrees to buy, from the company over a period of time, in this case 30 months. This is done in smaller manageable volumes. It is 50,000 per day as requested by the Company plus a percentage of a particular trading day, at a discount (lower of either previous days closing or average of 3 lowest closing prices over the previous 12 trading days).
The Aspire Purchase Agreement is the latter. This type of funding source has purchased shares from the company (at a discount) and then sells those shares into the market to raise capital for the company causing a gradual decrease in the stock price over time. Effectively Aspire Capital act as a middleman between the Company selling directly into the market themselves.
The highest price that Aspire is willing to pay is not more than $2.85 which is less than the last investment made in June of $3.38. Therefore Aspire will never buy stock in MBLX above the closing price of that value. The drip feed of the stock being issued in excess of 5m will occur over the next 30 months, and being sold into the market, means that it is highly unlikely that there would be any new investors willing to participate in any capital investment knowing there is to be a continuous drip feed that will have a downward pressure effect on the PPS without a major breakthrough. Each trade of 50,000 plus per day is a new issue and further dilution to existing stockholders.
dagiw....Do you know how to read an SEC filing? I do. Here's what it says about Aspire's ability to short MBLX shares. Like...They aren't allowed to under the terms of the agreement:
Aspire Capital has agreed that neither it nor any of its agents, representatives and affiliates shall engage in any direct or indirect short-selling or hedging of the Company’s common stock during any time prior to the termination of the Purchase Agreement. Any proceeds that the Company receives under the Purchase Agreement are expected to be used for working capital and general corporate purposes.
If that is the case then Aspire are making a nice arbitrage gain. The Agreement indicates that the Purchaser would buy at a PPS equal to the lesser of (a) the lowest sale price of the Company’s common stock on the purchase date; or (b) the arithmetic average of the three (3) lowest closing sale prices for the Company’s common stock during the twelve (12) consecutive trading days ending on the trading day immediately preceding the purchase date.
The lowest closing prices over the last 12 trading days were 5/5/7 October average $1.52. So while there has been a higher buy price since those dates any stock that Aspire have purchased and then sold into the market has resulted in as much as a 100% profit. The losers are those buying as the volume of stock is diluted. With the upfront 300,000 plus any bought that could well have exceeded $1m in profit without having to buy and sell anything much from the Company. Not a great deal so far then. Pure speculation but there has been no news other than a dilution and future issue of stock. What institutions would buy stock now if they know there would be over 5 million in newly issued stock coming onto the market over the next number of months?
So the way I understand it is they can choose to sell 50,000 shares to Aspire capital a day and in the report the pps that they need at this level to raise 20million is 3.93 per share. The deal is only really a $20million deal in that sense so if the pps does not reach towards this level their funding is going to be cut short.
Sentiment: Strong Buy
Why would they sell 300K? If they already bought and remember it's MBLX who tells them when to buy, why would they sell and hurt their purchase?