I suppose as an investor I am naïve, but recent events have me scratching my dome:
1) our lead drug meets its endpoint in a pivotal trial and the stock goes DOWN
2) we announce dilution and the stock goes UP
Funds like to know that they are going to be able to get their money IN and Out of a stock. with a small float that is not the way it works For the most part they would like a nice steady eddy with up ward pressure then taking them on a frantic roller coaster. Just the fact of having more stock will help that. They like easy entry and exit.
Sentiment: Strong Buy
with over 2 million shares short and a floor at least for now of 10.40, that's the only thing I can think of, but this has cost me big time after holding for 10 years and selling at 10.10. No revenues imminent and a 400 million market cap, this belongs at 8 at best.
Frankly I'm surprised at some of the comments pertaining to today's price action. I think what we
are witnessing is the understanding that the dilution is not actually a negative because the
stock value is one that permits INSM to raise a substantial amount of money without diluting at
a huge percentage of shares, especially in relation to past dilutions. Secondly this offering is
being well recieved which tells us the folks making this commitment have truly done their homework
and recognize what a good investment this company is, and it's chances of success. Third this
is a major endorsement of the management team, especially Mr. Lewis. This guy is showing the
kind of moxi the tutes want to see, and he has set this company up to move forward in a very
agressive, but well thought out way. I have to believe what we are seeing today is what the prior
analyst saw coming when they made their investment guidance on this company. I again encourage
all to that truly are invested here to read the JPM overview minutes. None of today's actions would
come as a surprise if you did...
Thanks for that, Zake. Question, which may show my naivety here, but........how many shares can Insmed continue to issue for sale? I seem to recall that before the most recent split that they were able to issue up to 500 million shares??? Am I wrong on that? But, if my recollection is correct, are they still able to issue that many...OR.....is that amount affected by the split and thus able to issue up to 50 million??
I could see the PH III results being a *sell the news event* because of the falsely hyped 3 day pre-announced CC not achieving Superiority but I agree, today is indeed a very strange but happy surprise!
Completely unorthodox Share Price action from most shelf offerings you normally see.
I've had a similar reaction to the price movement recently.
It's a bit like the broader markets: bad news has generally been good for the S&P, while good news suggests withdrawal of heroin, er I mean QE, and markets tank.