there are a lot of folks on these boards, it seems, that have differing opinions on the implication of the split. let's discuss like gentlemen, shall we. personally, i am starting to think this is a good thing, opening the stock up to purchase from new investors (institutions and fund managers that otherwise wouldnt have bought it under $5). i also think this may put it up for coverage initiation by some bigger names as they may look at it now that there is a $12ish PPS. what do you think the effect of having fewer outstanding shares is going to be though? is that significant?
many opposed the split initially but perhaps this has all been part of the plan?
My guess is that the reverse split is indicative of a cash raise, which will come very shortly. For what it's worth, I called the R/S months ago when it was first announced that there would be a vote on it. I'd wager I'll be right about this as well.
Not sure how to read this R/S -With pending catalysts, If positive results are announced for both trials this year,wouldnt the share price organically grow on its own to way over 5.00 without need for R/S?
You just need a 5.00 share price for numerous institutions and fund managers to be allowed to buy CYTK.
Listen, I was long SRPT (Sarepta Therapeutics) Who did exactly the same thing and it turned out perfect. All this does is bump up the price of the stock. Don't read too much into it as the main thing is that there's less of a commodity out there to buy (Common Stock) and now institutional buyers (Hedge Funds) have limits ($5 or greater) on what they can buy or not. Now that won't be a problem! Your value is exactly the same and more importantly this is preparing us for FRIDAY's Inclusion into the Russell 2000 Index.
Sentiment: Strong Buy
Now I'm wavering a bit on my positivity. Something about this just seems odd. What if they know the price would take such a hit as to drop it to that $5 range and that's why they are doing the full 1:6 instead of a smaller ratio. Man, I do not want to wake up tomorrow and see last weeks fun erased without an answer as to why. It's nut cutting time men, it's coming down to science versus management.
and look at the sizeable holdings by institutions....no one's going to be at the 'sell' gate tomorrow except for some small guys with their holdings...I'd probably have preferred to wake up one morning and find my two dollar stock worth $12 by some other means than a RS:) but maybe we'll find our $12 stock worth $24 just a little later on.
First of all, let me say that I have posted a detailed post in my original post of my conversation with the person at IR at CYTK. Please read it if you have not done so. Now, as for the ramifications of the RS. First, some people must like it, the after hours price was deep in the red at $1.90 shortly about 3 hours ago. Last I looked, it was in the green. This company is not a back woods pump and dump bio tech with no drugs worth a #$%$, of which there are many of . They are based in high tech Calif. Bay area, they have partnership with Amgen, and have drugs for at least 2 indications in advanced development, both of which could be blockbusters. I suggest if you are against the idea of the RS, do not make a knee jerk action to sell. All you will be doing is selling to the "big Money" type funds/people, ie., Cramer. This company is very much in the limelight with their potential very impactful drugs in development, do you really think they would do the RS if they thought it was going to cause negative results? I can assure all that I will stay on board and am expecting a very nice ride. glta
Sentiment: Strong Buy