Why IMGN went down today, why its a buying opportunity
Motley fool once again prove itself yo be nothing more than a fool. On Sunday, Motley fool published the article why Sarepta will not get accelerated approval. In the article, it also mentions IMGN's TD-M1 trial and why the FDA rejected the accelerated approval request. IMGN investors panicked without realizing the Phase II filing was about a year ago and now IMGN is going in with a Phase III filing showing huge survival benefit data. Just goes to show, people don't read nor do their due diligence. Watch for IMGN to rebound into the $12.40's once fools that panicked realize they were panicking over an IMGN event that happened a year ago.
The post board meeting results confirm what everyone feared, that more stock for issuance has been approved, so it is a matter of when, not if there is another dilutive stock offering. The disclosure to the new hire gives you a pretty good idea of where the stock will be headed. I think this is going to keep a cap on IMGN until we start to see royalties come in from TDM1 sales. Everything else in the pipeline is not mature enough to give us any meaningful stock appreciation based on any clinical news. It might be best not to watch the daily action here for a while. While the science is ground breaking and will provide appreciation in the long term, it is the current management that is taking advantage of the situation and raping this company for all its worth that is driving some long term holders crazy.
IMGN has no need to dilute other than the occasional stealing of options/shares by execs. They have over $200MM, + upcoming milestones and royalties. They should not need to dilute for 1-2+ years and then only if they start a large phase III on their own.
This drop is very curious, I think shorts are taking advantage of the recent ST rally and stupid article comments, and add a sprinkle of small new dilution (as JIA mentioned). Unless the market tanks, we may see a move up into the close. Watch for either a large put sale, or call buy before the covering. Might be a good spot here for put selling.
I agree, CH. I think today's fun drop is really rather another reflection of the terrible (mis)management of this company, the market seeing how freely Dan and his cronies dilute the stock to pocket it for themselves. The big institutions will soon get fed up with these clowns, and then we are really in trouble. That's why I don't really see this as a buying opportunity, unfortunately. And I have a lot of shares (for me), so it pains me to say it.
difficult to believe people could be that uninformed. Someone on IV speculated traders are playing the buy on Friday for Monday early approval game, not buying that either. Maybe investors are protesing today's dilution/overpayment for the new exec? Either way, with T-DM1 approval by early 2013 a virtual certainty (hate to say that could gump them), new phase 1 trials started by AMGN, advancement of BT and all of the other early/mid stage activity, IMGN is a steal here for the patient investor IMO.
I can only think of 3 reasons why IMGN dropped today (1) Misinterpretation of Sarepta article published by Motley fool (talks about Phase-2 TD-M1 trial filed a year ago) (2) Worries over a possible stock dilution. IMGN management has a track record of doing this (3) Profit taking (IMGN has been on an upward trajectory for the past 5 days). Regardless of the 3 reasons I mentioned, IMGN long term outlook still looks good. Today price correction may repressent a buying opportunity.
I think it's a steal to those that feel OK with such small royalty percentage compare to other biotech deals...I have moderate holding but not impress with royalty fee. Why they accepted such low rate when others are getting three four times more than IMGN rate.
I agree 100%...I was thinking same all this morning..Will rebound tomorrow with fresh start. .$.64 drop is scaring new buyers not knowing why...keep looking for ghost that is not there....All data impressive and ASH start in few days...keep buying