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Insmed Incorporated Message Board

  • fudfighter4 fudfighter4 Aug 22, 2013 8:42 AM Flag

    Michael Coen - some home truths for you

    I'm guessing your ears were burning when I made the following observation yesterday? -

    [ Insmed Longs reacted to the disappointing share price performance over the years in two very different ways.

    The first question many of us asked ourselves was this - "Did I fail to research the investment properly, and have unrealistic expectations of share price appreciation". In other words - "Was it MY fault?".

    The first question others asked themselves was this - "Who can I blame?" ]

    Inconvenient truths -

    1. Your opposition to the terms of the Transave merger was, and continues to be, based upon wishful thinking as to a reasonable valuation of the iPlex asset. You have never supported your stance with a revenue projection for iPlex which addresses factors such as anticipated use and development timeline.

    2. Dilution goes with the territory in a development-stage biotech investment. The cash required to finance operations for the years it usually takes to get a product to market must be raised either by issuing shares, debt, or donations. We don't tend to see donations very often, and interest payments can sink a company which relies on debt.

    3. Reverse splits make no difference in the long term to the value of the holding of an individual shareholder. Objecting to an R/S on the grounds that it effectively increases the number of shares the BOD is authorised to issue is lunacy. We have little choice but to assume a BOD will act in the best interests of shareholders, including issuing shares in a manner which minimises the level of dilution. In 2011 we had no good reason not to trust the new BOD.

    3. Your need to score points against me could be evidence of a personality disorder. One of us has been unreasonable here - is it possible it could have been you?

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