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Synta Pharmaceuticals Corp. Message Board

  • maggieruffus maggieruffus Jul 26, 2012 3:16 PM Flag

    Bruce purchased 3+ Million of the 3.9Million

    Bruce purchased 3+ Million of the 3.9Million
    Now owns @30% of the shares...Go Bruce Go!

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    • I actually rather have hedgefunds buy than mutual funds because snta will probably be a miniscule part of their portfolio of stocks. For example, alot of mutual funds and institutional investors have less than 1% in each of their holdings. In contrast, I am really hoping that hedgefund have snta to buy a large stake in their portfolio.

    • I actually rather have hedgefunds buy than mutual funds because snta will probably be a miniscule part of their portfolio of stocks. For example, alot of mutual funds and institutional investors have less than 1% in each of their holdings. In contrast, I am really hoping that hedgefund have snta to buy a large stake in their portfolio.

    • It works for the world's governments, so why not Synta!?

    • What price was the stock when the last dilution occurred?
      $4.40.

      Now where is it? $7+. So, I say dilute away if the share price goes up.

      Also, I'd rather see mutual fund buying than hedge funds.

    • I'm a busy guy, so sometimes I just have to go with whatever the iPhone Putin formy.

    • Good point...Hail. We have both followed snta for a long time and insider buying with snta hasn't really helped the stock in the past that much. I know this is a small cap biotech stock but would like to see institutional buying by hedgefunds and not a few million or whatever by fidelity that has hundreds of billions under management.

    • hailstorm,

      <If a partnership were eminent, they wouldn't need this money or this dilution, and they wouldn't be doing it.>

      By an eminent partnership, did you mean they won't get a partnership with the king of England? If so, then I agree. Perhaps you meant an imminent partnership. Stockpiling sufficient cash to fund operations for several years puts SNTA in a far stronger position to negotiate a partnership than if they waiting until were running on fumes financially. In any event, I doubt there will be any partnership until the NSCLC data becomes more mature.

    • The main purpose of this arrangement is to provide Synta with $25 million dollars, the details of how they get that money being secondary.

      The Board is charged with doing what is best for the company and its shareholders, and as dilution is never good for existing shareholders, the company obviously has a need for that money that supersedes the needs of its shareholders.

      If a partnership were eminent, they wouldn't need this money or this dilution, and they wouldn't be doing it.

      If this is a vote off confidence from the board, it must be long-term confidence, not short-term.

    • --->>They are well over 60% of the way there, and they will almost certainly need to conduct a shareholder vote to raise that limit before Ganetespib could ever turn a profit.<<---

      Probably not. Lets take a somewhat bearish case - only the LDH group ends up (at the next look) being good in Galaxy. They can still probably get $50M upfront for Asia (for LDH and for ALK+) - plus milestones. And later they can sell the ROW for, perhaps, another $75M plus milestones. Combined that with the $75M they have in the bank and that gets them 3 years without even considering the milestones coming in.

    • ---->>By law, insiders have a very strict set of rules governing stock purchases. In this case, it seems that they could not afford to acquire over time. This generally occurs for one of two reasons.

      First that they believed the stock price was going higher quickly. This doesn't make sense from a dilution standpoint.<<----

      I disagree. If they buy that many shares on the open market between now and the next data unblinding (at which point they could no longer buy) they almost certainly would have driven up the price. So, especially if SNTA wanted additional reserves (e.g. to get further down the road in BC) to get a better deal with Big Pharma then this offering is a good deal for both parties.

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SNTA
2.06+0.08(+4.04%)Aug 28 4:00 PMEDT