Like many here, I had high hopes that this company was a diamond in the rough that would not only achieve great success in the advancement of stem cell research but would also prove to be a lucrative investment. Considering the credentials of those involved, what was not to like? At least I felt that way until flagrant insider trading, massive dilution of shares and grossly inflated executive compensation packages reared their ugly heads.
Is the science promising? Without a doubt. Is Lanza the one to make it happen? More than likely.
Gary is actually an excellent CEO. He is providing a means to handsomely compensate his executive team and secure the necessary funding to operate the company. That's what a CEO is supposed to do and to that end he is fulfilling his obligations. The executive team will eventually make a great deal of money down the road.
The small investor here will not enjoy the financial rewards commensurate with the scientific and financial success of the company. Gary will continue to dilute shares as necessary in order to keep corporate funding alive. As an investor you have to ask yourself, is the gain you're potentially looking at after further share dilution really worth your investment? If you're sitting on a million shares right now thinking this stock will hit $2 or $3 a share then you're delusional. After continued stock dilution you're going to find yourself breaking even or marginally ahead after many more years of waiting.
Stop confusing the success of the science with pie in the sky financial rewards of owning shares. Years ago that seemed like a realistic scenario. Today it's blowing sunshine up your butt.
If you want to make some serious money off this company then you better get in touch with Gary and start campaigning for a spot on the board of directors.
"Gary is actually an excellent CEO."
He's acually an excellent WS shyster, and he's proved this time and time again.
"He is providing a means to handsomely compensate his executive team and secure the necessary funding to operate the company. That's what a CEO is supposed to do and to that end he is fulfilling his obligations. The executive team will eventually make a great deal of money down the road."
A CEO's #1 obligation is to improve shareholder value, and he's done the opposite, but I will give you this, he's enriched his staff and BOD's very well, and it's all at the expense of the common shareholder. through dilution of stock. I look at this as a form of welfare, where Gary always takes OPM(Other Peoples Money), but never produces anything of value, or ever gives anything back. Using OPM is the #1 mantra on WS, as the investor is the only one taking a risk. Just ask yourself, how much money has Gary lost in this debacle? The answer is none, because he's being paid a $1M salary, and all the stock he can gobble up free. And just wait and see how many of the 1B shares he gives to himself, his staff, and the BOD.
In my humble opinion, and this is no recommendation, because a 100% loss is ALWAYS possible in this kind of investment, no matter the dilution, small investment dollars will turn into huge returns, if the market cap reaches the potential underlying the scientific potential. None of this has ANYTHING to do with Gary undermining small investors. That's just nonsense. It sounds good and wise and is populist to say here and elsewhere, but it's just ridiculous beyond belief, to anyone with any real experience in finance, again, assuming the technology works as it has to date.
Assuming that trials continue along the same successful lines they have so far, it's ineveitable and impossible for your last point to be true, IMO. It's easy to think that, adn there is a lot of stupidity posing as wisdom on bulletin boards these days, but the key feature of smart investors, when faced with these challenges is to realize that all of this is part of the reality of being invested in a company at this stage, with this much potential, that has faced as many incredible headwinds and distress as ACT has.
If this company dilutes fully even throught the shares just authorized, AND reverse splits 100 to 1, I'm fairly certain, a good investor, who has shares that they bought in the last few years, will find a ridiculous return that anyone would tell them is incredible. If the company reaches 30 billion (not unlike Regeneron), you just have to do the numbers. If the company reaches 10 times Regeneron, or more, you just have to do the numbers.
So while I don't recommend this stock for most people, actually, I don't recommend it to anyone, because it runs the risk of a 100% loss, and I think most people can't handle that, I think the posts on bulletin boards are mostly emotional noise and are neither wise nor elucidating.
I see your point. I also believe you have a bad taste in your mouth because you owned so many shares and no longer do so. I still believe this company could JV or b e bought out at anytime. Do fool yourself that cant happen. It can! It will be worth more than $2 or $3 a share.
Sentiment: Strong Buy