Here's the deal for all of you who do not understand what's going on..... Let's take a look - if approved - of the purpose of the reverse split.
Reverse splits are perceived to have a negative connotation. That's true for stocks priced in the pennies trying to get their share price above $1.00..Most of the time these stocks have been setting new 52-week lows.For Inovio Pharmaceuticals, it's exactly the opposite. INO has been setting new 52-week highs and will likely continue to set new 52-week highs. Managemet probably wants to get their stock price above the $10 level and they figure the quickest way to accomplish that task is via a reverse split.Once above $10 large pension funds will become buyers.
What does the record show ? According to a report of a couple years ago released by Cleve Rueckert, Birinyi & Associates, 14 stocks within the S&P 500 since 2000 initiated reverse stock splits to make their shares more attractive to institutions. Of those 14, twelve were higher one year after the effective date of the reverse split, two were lower. The average gain was a gigantic 62.55%.
Time Warner Cable (TWC - $134.05) initiated a 3-for-1 reverse stock split on March 30, 2009 and since then TWC shares are up 346%. Well informed investors know what's going on. The intent of management is to make their shares more attractive to LARGE PENSION FUNDS. INO has been setting new 52-week highs for the last 18 months and the chances are highly likely (after the revers if initiated) that it will continue to set new 52-week highs. With a shareholders meeting of May 22, who knows - INO may already be priced at $10 and the reverse will be a moot point!!
If they were so confident in the results they would not even mention r/s. It would skyrocket if they were positive. The price would go well beyond $5....I bet they already know the results...that's why I bailed and took my profit. Just didn't feel right to me. I may jump back in....if the price is right.
It could be that they are not worried about PII results but rather that the PPS doesn't rise as much as it should. They have some experience with good news not translating into higher PPS (Roche deal). Therefore, they might need the RS to get to the desired price. Just MHO and trying to think positively about the reason for the RS.
Great info elcaribes! All the gloom and doom and comparisons to ZLCS need to be tempered! We have all assumed to this point that upcoming P2 trial results for HPV would be positive. If we thought otherwise, why would we be here.
An unspoken reason for the RS is the upcoming Phase II result, in Inovio's opinion,industry's opinion (and mine too) the odds are very high for a successful result, however as a CEO Dr. Kim has to think the unthinkable, the what if, so the RS is also a hedge against a negative Phase II result, the May 22nd date was not picked up by chance, I'm very sure that the Phase II results will come after this date.
"the May 22nd date was not picked up by chance" Share holder meeting 2012 - MAY Share holder meeting 2013 - MAY Share holder meeting 2014 ………….. wait for it ……… MAY. So in a way you are correct the May 22 date was not picked by chance. Also, hedging. If Phase II results are bad then even a 1-4 split won't get the stock to 5. If the results are great they will get above 10 on there own. The only thing I am sure of now is that Phase II results won't come out until AFTER 5-22.
I've been in them, and it didn't work out well. I hope this time it'll be different. I would prefer INO make it past $5.00 on the news of its trials showing how well our product is worth.
Looking for comment:
What is the motivation for a reverse split now? They have phase 2 trial info coming soon and it should give some validation to their platform..., and raise the stock price.
Maybe this is why???
INO is going to need cash for upcoming trials and I'm wondering what happens to the 300MM shares the board authorized, but not invoked, some time back. If the stock does reverse split, then I suspect those 300MM shares will then have the value of the reverse split. (don't know???) But if they do and INO sells them into the market at the split price, well, they will garner lots of cash while further diluting the stock.
i do not like that you did not state mr birinyis first name in your post ,it is laszlo ,i first worked with him in the 1980s, a wonderful man that loved money flow work ,have more respect
Thanks elcaribes. Go back and read the statement issued by inovia over and over, until doubters understand. Dr. Kim is trying to get the large long institutions in. He is trying to protect the long shareholders, Inovia, himself, etc. Shares are votes,
Sentiment: Strong Buy
How is he protecting us? He's diluting our shares. I wasn't as fortunate as the rest of you to purchase large amounts of shares at a bargain price. If they do a RS, I left with practically nothing. Sure, the price would rise if Phase II is positive, but then there is the wait for the results of Phase III. I love what this company is doing. I think it 's wonderful and I hope it succeeds. But, I am also here to make money. If they were financially in trouble and the RS was needed to keep them afloat is one thing, but they just received a boat load of money in the offering. Enough is enough.
Thanks Don. Been in INO since under a buck so the bashers can continue to bash. Frankly,, I think the stock will get to ten bucks without a reverse. However, if it takes a reverse to get us to $10, this stock will scream when large funds pile in. Investors who perform dd will understand what's going on. The fact that Roche is on board says all that needs to be said about Inovio Pharmaceuticals!