They sure act like they have tons of cash, don't they?
Sure seams to me that for a company that has very little cash on hand they sure act like they have deep pockets. Lets look at some data points over the past week or so.
1. They sign a lease that is good for 10 years, with a $500,000 deposit with room for expansion.
2. The lease they sign says that they will have a $50 million infusion by April 2014 to continue.
3. The start drug testing on another whole sub set group, which is costly.
4. They hire a marketing firm to help with launch.
5. They add people, from 14 to what I can see about 24.
6. They add quality control and manufacture specialists.
7. Manufacturing is in place to make 1,000,000 units, with 5,000,000 plus in year two. They must need some kind of up-front money, why the hell would they start making the units unless they had a contract with some deposit money.
8. The new World wide Headquarters is only 120 years from Mr. A.'s old company, Auxilium.
9. Auxilium raises $50 million in cash for new product line and says they are going into Transmucosal film.
Well should we be selling when this keeps hitting all the low end stops with NO NEWS? But there is news, the news I pointed out. To me a company or person who has been watching every penny just starts cutting through cash like there is no tomorrow really points to a deal that is done, we just haven't been told yet.
certainly good theory...my only concern is that they drop a secondary offering and decide to go it alone which cuts the share price to shreds and takes 18 months to receiver (if sales meet expectations..which they usually don't in year 1). See if you can search recruiters for sales positions for upstart companies in neurology / headache areas. I'll do the same.
sounds entirely logical and was thinking the same thing. all of that takes money (or the certainty of it.)
if there was no new building and none of the above then we would have a real right to worry. just wonder why the pps is bleeding as it is.
agreed doc, and i think there hands are tied as being able to say anything until the partner or buyout company says so. so all those out there selling keep selling because that is what whoever is triggering this sell off wants. glta
I agree with you about the spending of money like they have it. However, if a buyout or partner is really in the works, you would think the price would slowly drift up, not down. I haven't seen too many head fakes like this if that's the case.
Hope you're right and something is announced quickly.