Metabolix... announced that it has entered into an agreement with Jack W. Schuler, Oracle Investment Management, Inc., Birchview Capital, certain members of the Company's Board of Directors and executive management team, and other investors for the sale of an aggregate of $25 million of Company securities.
There is a very big short in this equity but now that Jack is back and ready to buy more the writing is on the wall. If you have shorts it is time to get out and cover. If you don't have stock now may finally be the time to buy; of course, always dollar cost average into any position.
FYI, the fact that board members and execs are buying says a lot too.
There are zero reasons for them to buy unless they are confident they are going to make money. They already have more than enough shares to become very wealthy should this investment finally pay off, yet they are ready to buy more.
The writing is on the wall... For those who are short it is time to buy and cover.
Wednesday may also be telling yet the excitement will really be over who's investing.
These are some very bright people and of course they are getting one hell of a deal, but their deal is what makes it possible for your shares to have long term value. Without them, the company would cease to exist. With them, the sky is now the limit. Time will tell...
Any post containing a URL (link) will automatcially be removed by Yaho,, this hurts honest users but also helps keep the spam off the board. Unfortunately these day to route out evil the innocents must suffer!!!
I'm curious when these folks can buy more on the open market. I assume the board members can freely purchase 48 hours after the quarterly but am not a broker or lawyer. This is just my dated memory from when I worked for a public company.
But I agree that who purchased does matter. Sure they got shares at what I find an unreasonable discount (assume other larger funding mechanisms did not materialize in the speed they had hoped for leaving mblx in this position). But why buy more unless you expect the company to do well? Some of the buyers have substantial knowledge on the company and chose to increase their risk level. I'm now quite curious to see if they will buy more now after restrictions are lifted. Presumably they were locked out of buying during financing discussions.