I saw one post that suggested AFFY was worth at least $2 per share in bankruptcy. Get real. Let's take a realistic look rather than grab an unrealistic number to try and justify a share spike. I sincerely doubt it.
With a bankruptcy the shareholders are last in line. First in line: Administrative claims which is the costs of the bankruptcy itself, which includes court fees and costs, lawyer's fees, bankruptcy trustee's or debtor in possession fees, etc., which are not insubstantial. Next is any bankruptcy financing or super lien creditors (Think in a plan of reorganization AFFY wants to continue with its collaboration with Takeda but cannot afford to do so without more money). Then comes property taxes and wage claims. Then comes secured creditors followed by general creditors. After everybody else's claims are satisfied, the very last claimants entitled to anything are the shareholders.
As per Affymax's Form 8K, filed March 18, 2013, it appears that there is about (and probably less than) $10 million in cash remaining net of current obligations.
$67M cash as of Feb 28,2013
Less $33M current liabilities and commitment to 3rd parties
Less $11M outstanding debt obligations under existing credit facility
Less $8M to $10M costs/expenses related to reduction in force
Net $15 to 13M cash as of Feb 28, 2013
Less $ unknown amount of expenses to continue Takeda collaboration and conduct
investigation and support the recall of Omontys
Less $ unknown amount to conduct ongoing business operations as a significantly smaller public
AFFY has about 37M shares outstanding, so between 35 cents and 40 cents per share free cash without accounting for potential products liabilities claims. Maybe Omontys is worth something, but Takeda is there as a buzzard circling a carcass of a drug and could probably get all of it for a covenant not to sue and a release of all claims. In the end, I would say AFFY is probably worth between 10 cents and 50 cents per share.
The type of mischief-maker that yells fire in a packed movie theatre - that is you Goddy. Your presence on this board? spreading half truths and spinning bunk? you are up to no good. I am sorry to say - you are a scoundrel.
Nev. I strongly advocated shorting AFFY at $15 to $16 share based on my experience as a health care lawyer and the ability to "read between the lines" of the Fresenius letter and the EMERALD/PEARL studies divergence in patient safety profiles. I again advised strongly against getting involved in the MM "save the hedge/mututal fund" cronies pop from $2.29 to $4.07. We are now about $1.50 share. I have always said if you are a trader and can beat the MMs at their own swings then have at it. Where I have drawn the line is to sucker anybody who thinks AFFY is an investment for a buy and hold. Anyone who followed my advice has made lots of money. I am confident that those who have followed your advice have already lost money and will continue to lose money. I sleep well at night.
Oh give it a rest Goddy. You have been at this for so long - Yahoo has given you this soapboax and you bash away. Pure rubbish. Your figures are speculation a - z. And you know that. You will be up bright and early in the a.m. to pollute this board. Good night old man - see you tomorrow. Nev.