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Heron Therapeutics, Inc. Message Board

  • atul_anand0322 atul_anand0322 Jul 14, 2013 2:54 AM Flag

    Dilution (Raising Cash)

    The pps has been rising lately but does anyone actually see this continuing or will this retrace back to the mid .30's. They have to raise cash before 1q 2014, who in the hell is buying these shares? I'm assuming just flippers and traders. I see this going back down into the mid to low .20's in the next couple of months. I'm long 13k shares and want to average down but there is no way I'm buying until they finish the offering.

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    • One more risk to waiting. The day they announce they have more money could very well result in the price moving rapidly up again also and you may miss that move also.

      • 2 Replies to dbeee2
      • Thank you both for your perspectives. It def. makes me reconsider my previous plan and I might even add some here after a few days. Most small biotech companies usually do the offering at or close to their 52 week high but I don't see this running up that high until closer to the submittal. Just wanted to say thanks again for your insight, it really did help!

      • My gut tells me this management team does not want to dilute their own stock gains from this technology anymore than they have to so I would not be surprised for them to hold off doing any offerings unless absolutely necessary.....cutting costs and personnel as they move closer to launch seems possible.....I also heard Quart state that he wanted to leverage this technology into other areas.....I could see them selling a license for this technology to another company to incorporate in products for pain management or other markets that would not compete with AP350.....this type of license could also be a first baby step to a buyout as well.

    • The question is the risk already baked into the price? Their cash position is well known. They won't need tons of money relative to their market cap. If you were running APPA, would you fix the financial problem while you are weak or wait until the NDA resubmission is complete. I suspect they will wait until then and their stock price will be higher at that time. So if you wait you will also missing part of the run up. Waiting until then is a conservative approach if you are more comfortable with that. However risk is also reward in this business. Good luck