"Question: could CYTX extend the warrant expiration date from May?"
You are right, other firms have done this to help raise more cash. However, most don't. Many would say it is unfair to shareholders - a deal is a deal. Certainly most do not like it when terms of expiring employee stock options are changed! Plus, after buying at $3 I doubt major shareholder and potential board member KT Lim would support such a move. Don't count on it Franshei - if it happens it'll be a gift to warrant holders. Let's hope expected news and broad market boosts the stock so the warrants expiring in September are comfortably in the money soon.
"Cash generated available for distribution is 3x dividends declared during Q1"
More dividend hikes in future possible if prepayments cooperate. With Fed ending QE soon, mortgage rates may continue to rise and moderate prepayments. Cash not paid in dividends can be used to grow through acquisitions.
Guidance for 2Q14 is 52 to 59 cents versus 48 in 2Q13. Prepayments and acquisitions will drive results. Conference call starting now...
"Release of Precise data..."
JD, there's not much to say because the results and publication were very much expected. This is consistent with the stock not reacting to the "news" that everyone expected. But what this does do is set the stage for the far more important ATHENA results. It also should help Okyanos market its services and as they successfully treat patients they will no doubt use their track record to generate more business. This means more sales and good publicity for CYTX. Next up: BARDA update.
"Having Billions in the bank makes light work of spring cleaning at Vodafone.
The U.K. telecoms group is buying the 15% of its Indian operations it doesn't already own for £1 billion ($1.68 billion) after the government lifted foreign-ownership restrictions on the telecom sector last July. Vodafone could yet buy out its local partner in Egypt. That's part of a wider plan to get Vodafone's house in order.
But, as the prospects of a bid from U.S. carrier AT&T fade, investors aren't yet rewarding the company.
Selling its 45% stake in Verizon Wireless last year gave Vodafone great scope to reshape its operations, while still making a big payout to its shareholders. In Europe, it is betting on convergence, having spent more than £13 billion buying cable operators over the past two years. It has also pledged to spend an additional £7 billion globally on its networks and distribution by March 2016.
The hope is a faster, more reliable wireless network combined with cable will help Vodafone restore pricing power, particularly in Europe, where industry service revenues have fallen at an annual rate of 9% to 10% for the past four quarters, according to Citigroup. Vodafone is aiming for £1 billion improvement in operating free cash flow by 2019, a 14% return on investment."
"Lower prepayment rates help HLSS."
US foreclosures fall to lowest quarterly level since mid-2007: RealtyTrac
"The U.S. housing market is back on its feet, aided by rising home prices, steady job growth and fewer troubled loans.
More U.S. homeowners are also keeping up with their mortgage payments. March was the 42nd straight month where U.S. foreclosure activity dropped from year-ago levels.
The number of U.S. home foreclosure filings slid 23 percent in March from a year ago, helping bring first-quarter foreclosure activity to its lowest level since the second quarter of 2007, a report from RealtyTrac showed on Thursday....."
Lower rates of refinancing and foreclosures boost HLSS' results.
".....A large drop in refinances pushed the overall volume lower, but applications to purchase a home rose 3 percent from the previous week, on a seasonally adjusted basis, according to the Mortgage Bankers Association (MBA). Purchase applications, however, are still down 14 percent from a year ago, when mortgage rates were a full percentage point lower.
Refinance activity has been falling steadily since the rate rise early last summer. Applications to refinance fell 5 percent last week from the previous week and are now at their lowest level since the end of 2013. The average contract rate on the 30-year fixed conforming mortgage held steady last week at 4.56 percent.
Refinances are now just 51 percent of all mortgage applications, down from around 80 percent in 2012 and the first half of 2013. Refinances had surged on historically low rates, and banks experienced a boom in activity. With refinances now down from a year ago, banks have had to reduce and reallocate staff....."
Lower prepayment rates help HLSS. Look for them to beat expectations again and raise the dividend in the not too distant future.
"high margin sales. And just importantly a high profile"
I agree, WST. The other key point DOV made was the possibility of scaling up operations, which would mean additional clinics in other locations. Based upon Okyanos most recent capital raise, it appears they have plenty of money and plans to grow. If patient treatments come in at a decent clip, the publicity from this growing high margin business should get the attention of investors. It would also demonstrate an attractive business opportunity for other doctors to open similar operations treating cardiac, sports injuries, cosmetic, etc.
"we may be closer to a deal with Astellas"
JD, I agree with your view and think it could happen this year before Japan's new regulations take effect. However, if a deal is not done with Astellas, I won't be so quick to attribute it "due to a "people" problem or (bite my tongue) a lack of belief by Astellas in the CYTX technology." I think the regulatory changes in Japan will drive a significant increase in capital and R&D dollars into the regenerative space and some of this will flow to CYTX. The fact that Japan is CYTX's largest market likely confirms a strong "belief" in the technology. So regardless of whether or not a deal is done with Astellas, there should be lots of firms in Japan coming to CYTX to help them with their regenerative initiatives.
Interesting views in the press today (Use Google to find them):
WSJ: "AT&T’s Rising Stock Means More M&A Buying Power"
NYT: "AT&T’s Stock Buyback May Further Signal Waning Interest in Vodafone Deal"
Thanks Nigeco. I assume directors were not required to swap out of VZ and into VOD so this is indeed bullish.
"This Unit will seek for the talents with variety of experience and knowledge from inside and outside the company"
No doubt the current regulatory changes in Japan are driving Astellas. The big question is whether Astellas, as part of this new initiative "to promptly establish regenerative medicine research," will desire CYTX as a partner. Maybe the past will predict the future - many will recall this old news from 2010:
The Associated Press December 7, 2010, 9:17AM ET
Japan's Astellas Pharma investing $10M in Cytori
Japanese drugmaker Astellas Pharma Inc. has agreed to invest about $10 million in Cytori Therapeutics Inc. as part of an agreement to evaluate the use of stem and regenerative cells for treating serious illnesses.
Astellas will pay $7 per share for 1.43 million shares of Cytori stock, a 35 percent premium over Cytori's closing price of $5.20 on Monday.
The news sent Cytori shares up 89 cents, or 17 percent, to $6.09 in pre-market trading on Tuesday.
Cytori said it expects to get net proceeds of $10 million on the investment in a deal expected to close Dec. 13.
Cytori, which is based in San Diego, makes products that are used in adult stem cell harvesting and research.
The equity agreement is aimed at allowing the two companies to evaluate the use of adipose derived stem and regenerative cells for treating serious illnesses for which there is no fundamental treatment.
The companies said they will explore a collaboration for an advanced regenerative drug technology.
Cytori also granted Astellas a 2-year right of first refusal for a worldwide research, development and commercialization partnership using Cytori's products and technologies in the treatment of liver disease. Astellas will also get a non-voting observer seat on Cytori's board and will participate in a newly formed scientific advisory board.
April 1, 2014
Tokyo, Japan, April 1, 2014 - Astellas Pharma Inc. (Tokyo: 4503, President and CEO: Yoshihiko Hatanaka, hereinafter called “Astellas”) has established the "Regenerative Medicine Unit" as of April 1, 2014 as an organization reporting to the Senior Vice President and President, Drug Discovery Research in order to promptly establish regenerative medicine research and build an autonomous and highly agile research management structure.
Astellas announced in May last year that it would expand the effort in the regenerative medicine and would make full-fledged effort in the cell therapy in addition to the discovery research and development of conventional pharmaceuticals for regenerative medicine that it had been working on. Now Astellas has established a new organization that will specialize in the research of the regenerative medicine and cell therapy to accelerate the advancement to the emerging medical field with cutting-edge technology platform.
The Regenerative Medicine Unit will implement the following activities in order to continuously create pipelines for regenerative medicine and cell therapy that will have advantages in the competition, in a speedy manner.
• To establish and maintain technology platform involving regenerative medicine and cell therapy taking advantage of multi-functional characteristics of cells in order to realize higher efficacy of treatment that cannot be achieved by existing therapy.
• To bear the hub function as the core research unit of regenerative medicine and cell therapy research.
This Unit will seek for the talents with variety of experience and knowledge from inside and outside the company along with the progress of the research and development and will expand the organizational platform.
"who T is eyeing now"
T is currently "eyeing" VOD. However, there are other possibilities:
WSJ: The Indirect Approach for a Dish Deal
It is time to start intercepting satellite signals.
Merger speculation, fueled by a Bloomberg News story, lit up shares of DirecTV and Dish Network on Wednesday.
DirecTV's interest in a deal with its satellite rival has been an open secret for some time. MoffettNathanson estimates synergies would be worth $30 billion—bigger than Dish's current market capitalization. Indeed, a previous merger attempt was blocked by regulators in 2002.
Regulatory concerns and a shift in Dish's focus toward buying up airwaves have since kept a potential deal on the back burner. Its revival now looks tactical.
Dish may think it will be easier to get a deal past regulators while they are also weighing the merger of Comcast and Time Warner Cable. The satellite companies could argue that getting together would help them better compete against such a cable behemoth. Even if that doesn't fly, a Dish-DirecTV bid could inspire regulators to reject both deals, stymieing the competitive threat from the cable merger. And if regulators approve the latter while rejecting a satellite deal, Dish and DirecTV would end up roughly back where they started.
Regulators, though, are unlikely to see a Dish-DirecTV tie-up in the same light as the Comcast-Time Warner Cable deal. The cable operators don't compete against each other in any markets. Dish and DirecTV, meanwhile, compete in every market, most significantly in some rural areas where satellite is the only pay-TV service available—something regulators focused on the last time around.
For Dish, threatening to merge with DirecTV may also be aimed at flushing out potential buyers for itself. AT&T, Verizon Communications, Sprint, or even a technology company like Google might be interested in gaining Dish's wireless spectrum...
"What do you think the impact of the Precise publication would be on the PPS? I think not too much."
Perhaps you're right, but I won't be surprised if it helps the stock. Though a small clinical trial, having promising results published in a peer reviewed journal will boost exposure to doctors & researchers, analysts & investors, and patients that may use private clinics. Furthermore, it will support and highlight CYTX's current primary clinical trial priority: ATHENA I & II.
From IMRS' March 4th press release:
"Cash and restricted cash at December 31, 2013, totaled $13.9 million and accounts receivable were $14.0 million."
...to Overweight from Neutral.
No surprise the stock is getting some analyst support. Management has indicated a good chance of a dividend hike this year and with prepayments cooperating nicely they should continue to report solid results.
LOL - Given your never ending stream of negativism, pot calling the kettle black???