Susanna Chau is the new manager of IR, replacing Mary Vegh.
I asked her about the shelf registration, and she said it was a refiling of an existing shelf registration. She said the original filing was done in 2005 and it expired in 2008. The new registration is good for another three years and it is basically there in case the company needs the additional funds.
Molkentin stated in the conference call that they had no intention of raising money this year.
I also asked her about the balance sheet change that billy mentioned and it is strictly a move of cash equivalents to longer term securities. I asked her how risky this investment was and she replied that they only invest in high grade commercial paper and US government agency bonds.
So I'll predict now, that SUPG will be $2.20 before it will be $1.00. This is .60 more or less than the current price. Will I be a genius when it hits $2.20? Short-term SUPG's price will be tough to predict, long-term, with Dacogen funding cash burn due to new drug dscovery, it is a no brainer that the price will be going up. We are basically at cash value now $90 mill cash/57 mill shares. I will gladly take the chance that in the years to come SUPG will hit at least double their cash postition, and the share price will at least double. If you are needing a quick pop, I wouldn't put my money on SUPG as there are better choices, but if you have a couple of years time horizon, I say load up. This is my strategy, of course. To the loyal longs, I say let's meet up in a couple years and sip the bubbly!!
I asked her how risky this investment was and she replied that they only invest in high grade commercial paper and US government agency bonds.
I remember ge bonds rated tripe A and now its lower. Give the name of the bonds, goverment, etc. Many of these are down within a matter of days. We sold triple a hawaii muni bonds 2 months a go for 100 par value w/5%. Now there 90, so the value of there bonds might be lower at this time which I bet it is.
<<I remember ge bonds rated tripe A and now its lower.>>
Good point rory (for a change).
Still, GE has plenty of cash on hand to make those interest payments. Even the ratings agencies don't see GE defaulting on its debt obligations. The only thing a lower rating does is get the bondholders a higher interest rate. And in fact, that is really only on new debt.
I would be happy if SUPG had GE debt as an investment.
I don't know much about Hawaii's debt structure, but I doubt that anyone is losing money with those muni bonds trading at 90. I expect Hawaii is continuing to make its interest payments.