i am rather suprised that the company did not disclose the fact that they did not pay interest on their debt for over 6 weeks. i would think shareholders should give the company major grief over this.
stock was surprisingly strong today given the news. i guess it's hard to sell at 7 cents if you owned it at 160 pre reverse split.
good luck longs.
the only recourse you have is to the independent directors.
look, i don't want them thrown out. i think they have made some mistakes of course but they have done many things right. i just feel like they dropped the ball on capital allocation. However, given the stock price we have another bite at the apple.
a couple of the top 20 holders have been selling over the past 6 months (obviously with lots of buyers from top 20 also) - a few guys i see perhaps continuing to sell.
have you sold your shares and gone short?
which sell side has 2.2b for pbc. csfb is north of 1b. bmo is 900mm. i am using 750mm. that gets me to my 150 downside price... the upside cases you highlight are crazy high.
GILD seems to think they have their own special sauce to figure this out...
highly unlikely that they get 300 given stock is at 140. maybe 240 and a small cvr thrown in.
if i were them i would take that.
what is your estimate of takeout price? what other biotech names are you in - i am looking for others. thanks
i explained this a few years to one of the independent BOD. i might decide to revisit this with him in the future. Writing 6% ROE policies is bad business when you are trading at 1/2 of book with a good book of business in the portfolio. better to return capital.
because there is still some independent BOD here and they have a fiduciary responsibility to all shareholders not just the insiders.
specifically in their proxy
Each candidate for director (whether or not recommended by a stockholder) must possess at least the following minimum qualifications:
Each candidate shall be prepared to represent the best interests of all of our stockholders and not just one particular constituency.
there can potentially be a strong case that the former CEO was paid too much money - especially if one can show how much he worked at his various jobs. This issue should go away given his new role - but worth investigating for anyone willing to get active.
my beef with the company is the poor capital allocation. This can be fixed with a larger dividend and/or modest share repurchases which are both good for everyone - insiders and outsiders.
have you read any estimates of off label usage. obviously this would only help 2017 and 2018 numbers. i dont' think it will be huge but it's perhaps a few thousand people per year.
what changes have shareholders proposed? i haven't voted on anything. why don't you propose something and see how many votes you get for it on the proxy. you (and i ) complaining about capital allocation doesn't mean much - they want to know how their big shareholders feel.
now i am trying to figure out how much off label prescription will be done. i am assuming zero for now. but this could be potentially good source of revenue in 2017-2018. won't change long term picture.