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Synta Pharmaceuticals Corp. Message Board

  • michaelangelo94 michaelangelo94 Nov 8, 2013 10:04 PM Flag

    Is this a value play or a trap?

    All the insiders who bought earlier this year are underwater now.

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    • xx369 Nov 9, 2013 1:41 PM Flag

      If you look at a weekly chart, you will see, this stock went below two dollars. However, they have a lot more going for them with the approval and publishing of the HDC patent application. In addition, they are accomplishing their objectives with multiple drug trials, as they move forward. The main concern is the cash burn, they need more cash to see their FDA trials through to commercialization. Everyone know that they are in advance discussion with potential partners, but we don't know what the take away will be and exactly when they will ink a deal. Also, all financing options are being considered which means we could see dilution through a stock offering or through convertible notes. They need about $100 million to see things through, so at a current price of 4 they need to issue 25 million shares. In comparison, GERN has 128.65 million shares outstanding with 70.80 million cash and SNTA has 69.05 million shares outstanding with about 50 million cash. Both stocks are in the $4 range. Increasing the outstanding shares for SANTA will increase its value in comparison to GERN.

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