Lurker here. I have no position. The 8K is somewhat ambiguous, but it sure sounds like more shares being sold to raise cash. Any experts who can interpret this? I'm seeing as much as $40 million plus $1.5 million.
This represents as much as 10% dilution.
The share price did a nosedive below support levels. Subtract 10% from, say, $5.75 and you wind up with a stock price of $5.18.
No science, just guessing. They announced this at a bad time.
Check out SSR they just came out with an email report on MSFT, pretty interesting report. If you’re a trader you should sign up to their free newsletter regardless. Their last downgrade was on PLUG, next day it tanked 40%...LOL
They have no choice..... company burns through money year after year. The company is not profitable and wont be unless they can get platelets approved in USA. And as one post pointed out they have pushed back that review until sometime in 2015???? By that time they will have burned through that $40M and will need a huge infusion of new cash to launch platelets in USA. Not looking good either way. Look fro pps to stabilize in the near term around $4.
I agree. at least a 10% cut. Looks like the company could become profitable by 2016 if everything goes right. Others have pointed out the delay in platelet review by company since last CC call. What happened there? Does not bode well! Big gamble.
Nice analysis and my entry price target exactly. More market weakness ahead as Geo-political risk and index new high failure occurred on Friday. See you at 5.20 ish. Being real careful as my gut is telling me a 10%+ correction is near. Take a look at the mulit-year VIX chart. We could see 25-30. Already long VXX call options.