I think New Dilution Offering of $80m at $4 per share will take away 25% of your stake
Everything depends on trust. The way the public officer here behaved here on Fusilev makes me feel nothing (including financials) and anything that comes out of this company can be trusted. Pls note when there is a dilution offering, it will generally not be announced that it is coming. You have seen how shockingly irresponsible(euphemism) the statements on Fusilev released by this officer over last year and half and esp so in Q3,Q4 while this person was selling the stock ($8.8m).It is truly unbelievable for me.
Yes I did know that Fusilev sales were not sustainable. But I had modeled around $35m and i thought this company would still break even in that scenario. Although this company has guided they will break even , I completely dont believe that . i think they will dilute away shareholders. remember they increased sales force....So if they raise $80m at $4 per share, that will dilute existing shareholders by another 25%. I personally think they should do it, to be prudent. But look how irresponsibly they again were when they said, we have enough cash and we will break even.....i think they wrong and another negative surprise will come again to shareholder by diluting away your 25%. And all that pumping on a drug that just passed phase 1 is PURE PUMPING. It has not even passed phase 1
can we believe anything at all from this company ? over and over (almost in 20 conf calls) the guy said Fusilev will stand on its own when generic leucovorin was in abundance. the guy guided for growth several times in Q3, q4 from 2012 base.
you guys will be surprised when he comes up with a HUGE dilution offering. "add value to shareholders" #$%$
He was saying some time in 2013 they may need to raise money, not neccessarily this very second. It really would depend on how much of the pipeline they want to pare back investing in, to keep a profit with the lesser revenue; or if they have enough of those pipeline items and trials that they really like that they want to leverage it with financing and keep them moving along.
Not telling the share holders that they are offering a diluted offering is a complete lie on your part. It has to be stated. Name me one instance that you know of where an offering was offered and the share holders were not informed.
There are companies out there in this field that will say they dont believe it will be neccessary; and then you get blindsided a month or so later when the pr comes out stating that they are doing one. It don't mean spectrum will not give some notice if they were to need to raise money; just that its not uncommon to not know financing is coming up till you see the PR.