Let me tell you why:
CLDX was traded at $27.50 when the secondary offering announcement, 80 Mil. floated shares. Secondary offer of 7mil shares priced at $24.50.
The market cap loss of $3 X 80 mil shares = (- $240 Mil.)
Cash gain from $24.5 X 7 Mil. shares = + $171.5 Mil.
Investors loss $240 Mil. while CLDX gains $171.5 Mil. in cash. Basically CLDX management says, screw investors..
If CLDX has a such potential pipeline of products, why don't they raise cash through private equity firms by selling 7 Mil shares at 10% discount ($24.5) without interfering with the floated shares ? I am suspected that private equity firms are too smart to invest in bogus claims by CLDX's phase I, II trials results.. it is easier to screw these retail investors and lazy institutional investors who managed public money like 401K, IRA , Pension plans.. you don't have to agree with me, just do the math and you can see the discrepancies of the net gain/loss of this transaction... who is in the right mind would lose $240 Mil in market caps to gain $171.5 Mil in cash ???
Maybe someone hasn't learned what ownership means is a "publicly owned " company.
We are the share holders and the cash is our asset. I've been investing in Biotechs for a long time and one of the largest problems in the industry is the lack of ability to raise working capital. CLDX doesn't have that problem. What does that tell you????
The choice between partnering and giving up half, or more, of the future revenue of a block buster as oppose to minor selling of more shares. 1 good drug will generate more per deluded share revenue than the lost partnership dollar, hands down.
This is a good, no, GREAT move, and handled to perfection by a very talented management .
dbegley, which is bigger number: $240mil or $171.5 mil...wonder why many companies could not find qualified candidates to fill opening positions due to lack of math and science.. you have proven they were right...cash is asset, but market caps is NOT ?? would you transfer your checking account to me if I give you 71 cents cash for every dollar in your account ??
casa are U serious w/ your SILLY FUZZY MATH---LOLAY!!!????
No Longs on this BD feel that way...we are LT holders and we know CASH IN THE BANK frees up CLDX to do whatever they want...we LONGS have already MADE BANK on OUR INVESTMENTS...many of us are here since 2007 and have bought CLDX shares at @$2 each...please spread your BS some place else....SHAREHOLDERS are very happy w/ this move..the last T they did a Capital Raise it was @$7 and we watched our $7 shares TRIPLE in months!
GET LOST cas cu jo!
Sentiment: Strong Buy
Yeah, Frank you were "cherry picking". You only used one year of steady gains leading up to a 300 to 400% gain as support for your argument that CLDX did well (very well) with their last offering :D I wish new shorts here would read the old postings so they can see it's all been tried before
Sentiment: Strong Buy
the only fuzzy is your mumble jumble about buying at $2..blah blah blah.. where is your math proving this secondary is good for share holders and investors... show your math skills, don't reference the last offer because you're only cherry picking the timelines to mislead the facts. Speaking of the LT investments, CLDX is in existence for 30 yrs, they have raised cash for numerous of times and stock used to trade at $200ish.. If you started investing in 2007, then show me how many drugs did CLDX release to the market and the revenues came from those drugs ?? if you're an investor who would hang on with a company that produces nothing for 6 yrs, then I REST MY CASE....