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Columbia Laboratories Inc. Message Board

  • koufax62 koufax62 May 20, 2013 5:32 PM Flag

    Reverse Split = Non-Event

    to moderately positive specific to Columbia Labs.

    I simply disagree with any opinion to the contrary and the reason is as follows. The vast majority, if not all, small/micro cap bios that have implemented such a maneuver generally to always have one thing in common beyond the necessity to meet listing requirements and that something is that they all "burn cash".

    Cash burners in distress that reverse split the outstanding common are essentially sounding a dinner is served bell for short sellers, hence the usually predictable post split fall for the recently elevated via manufactured PPS.

    That is NOT the case for Columbia beginning with cash flow positive status and ending with cash on the balance sheet vs current MC against revenue generation Q/Q. In other words, the stock is very cheap now and will remain "identically" very cheap after a "potential" reverse split.

    The moderately positive aspect is that the listing "overhang" will be "eliminated" with no ill effects to current shareholders.

    Recent history and the corresponding effects on the share price can't be disputed but value still remains and risks are, for the most part, completely wrung out of the stock from a valuation standpoint.

    FWIW,

    Koufax.

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    • Still standing by the original post "10 weeks earlier"!

      The stock still remains under valued and the "predictable" RS PR makes/made perfect sense. For one thing, if an RS had the potential to negatively impact the PPS beyond current valuation, "management would certainly have delayed the process to the max" which could easily be well into CY '14 but they made the smart move to "expeditiously" remove the psychological overhang and divert focus back to the more relevant which is earnings.

      Citimar is simply off his rocker if he thinks I care/cared (accumulated shares in .60 +or- area) about ancient CBRX history. It's all about valuation in the here and now, and that is all!

      The measured rise to higher ground will continue for all with the patience to allow it to happen!

      Pretty simple IMO!

      Koufax.

    • they are freak shows bc they are burning cash. have no access to capital markets....none of which exist for cbrx....my recommendations short of some life to prochieve, is for frank to financially engineer this puppy. Give a dividend, do a buyback...we have cash and will continue to generate cash, and more of it as merck kga is dedicating themselves in the ART area. Reward the shareholders by un-diluting them from all the freak show secondaries of the past. Thats how you get the stock to recognize its value

      • 1 Reply to topro
      • topro, the dividend is a good idea imo, even if it has to be used in conjunction with a reverse split. I see no reason why a dividend could not be issued. Mgmt has been against the buyback because they say it will use up all the cash. OK, then do a dividend. This needs to be considered carefully by mgmt. We are cash positive for the foreseeable future, and it rewards longer term investment, while it may still allow for an acquisition utilizing some cash at some point. It also does not have to be issued if we enter into some lean qtrs. Mgmt needs to really look at this option.

    • Oh cut me a break. That analysis is the most ridiculous I've ever read. The stock is down 75% from the highs it reached at $4, a few years ago. THEY ARE REQUIRED TO SPLIT THE STOCK TO STAY ON THE EXCHANGE. Do you think they would do a reverse split if the DIDN'T have to? No. You know why. Because $10 stock (20 for one split) is much thinner than a $.60 stock. Many people with 1,000 shares now, will get out when they only have 50 shares and a thinner stock makes it easier for shorts to manipulate the stock. Some shorts CANNOT short a $.60 stock, but at $10, they will have a feast.

      I guarantee you it goes lower. The only question is how much? I've had a number of these and have NEVER seen one go back to pre-split values!!!!!

      • 2 Replies to citamar
      • Citamar, please calm down before you have a nervous breakdown or something!

        Of course, barring positive news prior to, a reverse split appears to be the only option available to meet listing requirements. Is this comment supposed to be some genius revelation that no one considered before now? Of course not!

        Where we totally disagree is the effect on the PPS "post split". Thats fine Citimar, you're entitled to an opinion. I just disagree with with what you think in this instance. I've been investing in the small and micro bio space for 2 decades and have witnessed PLENTY, so no need for you to try and "save me from myself"! I'll be just fine.

        PS, if the small fry *(face it CIT most are already victims of attrition) throw in the towel,,,,SO WHAT! Their shares WILL be absorbed like tasty snacks. It's the holders of quantity that matter and I see nothing but shake-out/ accumulate at the bottom of the range for months now. Lastly, and you know full well, whether the the stock was 10, 20 or 100 at one time is irrelevant, the only thing that matters now is that the PPS is under the minimum PPS threshold set forth by the exchange. Again I say, SO WHAT! 54M MC now and 54M MC post split *(subject to change) Cheap vs cheap and NO green light for short sellers!

        It's not life and death Cit, lighten up a little will you please!

        Koufax.

      • usually correct cit..look at SRPT..was avii trading at 60c/sh last june..they reversed 6:1 last june..last july BOOM news hit and the stock has rallied from $3.6 to over $45 and is over $37 today..if the fundamentals are there it is possible to win at the reverse split game but you are correct reverse splits are usually done by freak show companies..

 
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