You have a company with $9 million in revenues and $15 million in losses every quarter that has somehow garnered a $400,000,000 market cap. How can you lose over $60 million per year and somehow convince shareholders to give this a $400 million dollar market cap? It's easy, you litter the message board with paid pumpers and you have hedge funds get involved with outlandish price targets just so they get paid everytime this company dilutes shareholder value.
$400,000,000/132,000,000 shares = $3.02
$400,000,000/138,000,000 shares = $2.89
$400,000,000/200,000,000 shares = $2.00
This company has a shelf registration to take this to 200 million outstanding shares and if their past is any indication of their future you have to factor that in to the share price. Further dilution has ruined this pig and with the same market cap look at where this stock could be.
Remember the good old days when we had 87 million outstanding shares in 2010?
$400,000,000/87,000,000 shares = $4.59
Date ------ Outstanding Shares
Sep 2006 -- 30,634,872
Sep 2007 -- 39,643,876
Sep 2008 -- 58,901,030
Sep 2009 -- 78,844,251
Sep 2010 -- 87,614,420
Dec 2010 -- 108,396,709
Mar 2011 -- 121,635,339
Jun 2011 -- 123,354,986
Sep 2011 -- 124,325,299
Dec 2011 -- 132,467,537
Q1 2012 -- NetLoss -- $(15,946,157)
Q2 2012 -- NetLoss -- $(17,050,116)
Q3 2012 -- NetLoss -- $(15,030,214)
On track for another year of exceeding $60 million in losses.
2005 -- NetLoss -- ($30,606,564)
2006 -- NetLoss -- ($62,552,814)
2007 -- NetLoss -- ($20,933,453)
2008 -- NetLoss -- ($17,495,739)
2009 -- NetLoss -- ($21,996,016)
2010 -- NetLoss -- ($26,694,148)
2011 -- NetLoss -- ($60,631,563)
2012 -- NetLoss -- (Over $60,000,000) Estimated
The company has never been profitable with Katkin at the helm and has continued to use shareholders as his personal ATM.
With horrible script growth and more losses getting reported in November look for a decline back below $2 per share just like what happened during November and December 2011.
Someone should have told Harry to wait to buy till after they report another quarter of losses and insiders dump hundreds of thousands of shares. Another $1 drop at least before anyone with a brain is interested in buying this scam.
Considering, as gene_ hackman76 reminded us so often, Katkin sold off the anthrax mab for a million bucks and ebs used it to obtain a gov't contract just a few months later which was unarguably responsible for a rise from $3 to $18 almost immediately and that was over 5 years ago; and considering AVNR shares have never broken much higher than $4 during the same time period, it is a miracle that A) Katkin has not been walked out in cuffs with the entire BOD and B) he and the entire BOD still have jobs at AVNR.
I got an alert today saying Avanir was back under $2.75. Smart money bailed at $4 and got one last chance to get out at $3.50.
You were told to look at the 2011 chart to see exactly what happens in November and December to this stock. Insiders start dumping shares, company reports losses, and the share price drops. This should not have been a surprise to anyone except pumpers who are clearly over invested and have clouded vision on how to invest.
Back under $3.
So since November 2010 this stock has fallen from $5.80 to under $3. This will be under $2 before the end of the year and honestly might spend 2013 in the $1 range unless there is a $4.50 buyout.
The best part is this stock is worth less now than before they even had their one and only drug FDA approved.
This has got to be one of the biggest scams on Wall Street since 2000. They sell a drug for uncontrolled laughing and crying.
So after two years of hyping and pumping this drug they have maxed out at 2,500 weekly scripts when they need at least 4,000 weekly scripts to breakeven.
Please tell me you clowns weren't listening to investment advice from Tradestoxx, Jeandoyon, Shortsrscum, Jonasmoses, Greatdayforbeingdirtbag, Harrymaster, or any of those other clowns.