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TENGION INC Message Board

  • dllenski dllenski May 18, 2011 11:11 AM Flag

    Will Suitor Return

    In February it was said that a large listed company was interested in TNGN. They backed out after the stock spiked on the news of the possible buyout. The stock had jumped to $6. That was to much to pay at the time. Now that the stock has been cut by 75% does it make it a good time to buy. It looks like they were trading in the $3 dollar range before the buyout talks. That would mean they would have paid a small premium and may be paid $4 a share. Is it possible they come in and offer $3 under current circumstances? I am guessing we may hear a little chatter regarding the possible sale. Any other thoughts would be welcome.

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    • stock goes from $2.50 to almost $1 on huge volume and you think it's just retail selling? wait until the updated 13-f and 13-d filings come out and you'll see which insitutions got out of the stock. btw, not all the insiders participated in the last financing round. I guarantee we'll see that many sold. it's pretty clear why they did that in hindsight.

      number of shares short listed via reuters or bloomberg is notoriously unreliable in micro caps.

      look, i hope you make money and the stock goes up. but i've seen these microcap science projects before and the risk is very very high that you wake up one day and it's a OTC traded penny stock. the NUC project has a lot more risk than people appreciate. it's worth a bet perhaps, but just small one - like a powerball ticket.

    • As of May 31 there was only 177,000 shares short, you don't know what you are talking about. Market conditions (all bio-techs have been beaten down since early June), and probably retailers who have capitulated from much higher buys, sold the stock down to 1.04. Glad I got in at those levels.

    • the smart money has been shorting the stock for the past three weeks. at these depressed levels though, it's harder to say what to do.

    • no they did $30M for 2/3 dilution (if you assume the warrants become in the money). remember they doubled the common shares plus added an additional 100% warrant coverage.

    • Jerry why are you here then? I think 30M for 1/3 dilution is not that bad considering they just did 30M for 1/2 dilution. Do you have a position? Why not short the stock if you think it's going to be diluted to hell? I'll buy the shares you short ok?

    • $30M for 1/3 dilution doesn't seem like good deal. and anyone who wants to buy the company will have to count those warrants as common shares (assuming the stock price goes to that level ever again).

      unfortunately, retail investors don't have the ability to participate in the inevitable future financing rounds so we're stuck with the common equity and slowly get diluted away while the institutions pick up heavily discounted shares with dividend preferreds and warrants.


      (this company will never be sold for $2. the largest shareholders would be underwater and vote it down)

    • Don't you understand the 100% warrant coverage will bring in another 30M? I doubt they will be doing a financing anytime soon. They have enough cash til May 2012 and by that time the stock price should reflect the prospects of the NUC and company better. Accordingly, the stock price may be high enough that they rake in the 30M from the warrants or are bought out (based on good data).

    • They have a fiduciary responsibility to shareholders. So if a buyout was to occur at $2, they would have to accept if it's in the best interest of the shareholders.

    • The Orphan-Drug Designation makes it even more atractive to the 'Suitors'. More to come soon.

    • I thought about selling like you. I looked at the link below. The website shows that almost 80% of the company is owned by large investors. I figure they know more than me. I will hang around a little longer. There was plenty of buying action today.


      http://www.dailyfinance.com/company/tengion-inc/tngn/nas/institutional-ownership

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TNGN
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