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Spectrum Pharmaceuticals, Inc. Message Board

  • brad_stockoptions brad_stockoptions Dec 11, 2012 11:38 AM Flag

    Waste of money. Small growth companies should not pay dividend. Period.

    An example of bad management. Plus one time dividend wont help short interest problem

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    • Under normal conditions, yes. A small biotech company shouldn't pay a dividend, instead saving the money for growth like trials and acquisitions. But SPPI's situation is far from normal, becoming the most heavily shorted biotech stock in the U.S.

      It's interesting to see what SPPI will do about dividends next year. Its press release says future dividends will be at the board's discretion. If it pays $0.15 on a quarterly basis -- whether it's a sound strategy is open to debate -- it amounts to $0.6, or a dividend yield of 5.5%, which most certainly should crush the shorts.

    • If they have no better imminent use for the money(i.e. a drug acquisition), than this is certainly not a bad idea. IMO, the long/short funds might now bias long-only and continue as 2013 approaches(if the divy goes quarterly). It's getting prohibitively expensive to remain short, however, I don't think Raj did this because of shorts per se. Otherwise, if his goal was to completely eliminate shorts, he could have done a very large blowout one-time lump payment. Instead, this was as not only a reward for long-time longs, but suggesting very strong belief in their future revenues continuing to stream very well going forward......

      I find it so very odd that AF, who supposedly covers biotech for a living, finds it as being "unhealthy" for a CEO to take every kind of initiative available and at his disposal to eradicate the cancer called the short interest that has artificially suppressed this stock so dramatically, so exaggeratedly and for so long, and, at the very least, do it as strongly as the biotech itself does to help eradicate/ameliorate the diseases of those who actually have to deal with the real terrible affliction of it with gusto......The unhealthy obsession is AF with Raj and SPPI.....

    • Wrong brad. This is a sign of greater things to come. Shorts will have to cover and zoom zoom there we go to new highs. Markets always correct themselves eventually.

      Sentiment: Strong Buy

    • bradstockoptions = sppi basher= ignore this #$%$ he is same poster as "frank"

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