AFFY's war chest is now full, with sufficient cash for next 2 years. All the big players have bought in during the last few weeks at very low valuations and this thing is set to explode upward. Conf presentation with Takeda coming up later this month and major NDA submission in process.
The fact is there was a large investor that wanted a 1/3 of the company and they could not buy that amount of stock in the open market without driving the price way up (i.e. to 10 or 12). This whole move down has been a manipulation to make it look as if they didn’t sell the shares below the current market value
So some investment banker with ties to the new CEO convinced them to offer additional shares, too bad they decided to sell at 5.90 instead of 7.25-7.50 where the stock had been basing. I guess Affymax didn’t need the extra 15 million, Idiots.
Once they shake out the retail crowd this thing will fly. Just quit watching this every day and you will be pleasantly surprised in about 30 days as buyers will be coming anticipating the NDA filing!
Anyone who got caught in the financing drop and dilution, that sucks. For those who came in afterwards, they are sitting pretty. One measure of valuation is calculating enterprise value, which is equal to market cap - cash + debt. By this measure, AFFY is significantly undervalued and trading below cash. That is to say, no value is ascribed to its lead program, partnerships and potential milestones, facility and equipment! This is a mispricing and we shall soon see it correct. While one might debate whether this gets approved on first cycle, someone would have to be foolish to short this company tomorrow.