I think it creates a capital gain, which can only be offset by a capital loss, not an operating loss, so that's why they were thinking about selling 1-2 properties where they had a loss. I assume the properties they have identified to potentially sell are also not a good strategic match. I'm not for selling at a loss just to offset a gain, but holding a loser stock and then paying capital gains would not be much fun.
all 8 of you get back to work (or get out), ARNA needs some success (or cost reductions).
They have $100MM of approved liquidity/spending for buying back bonds. The problem with buying bonds back at a discount is the unit holders would have a tax liability. To offset this they may sell some properties at a loss.
looks like we have 12 shorts, or ARNA employees following the MB, get back to work!
yes, I'm sure they will provide more detail on the call, but I think you're on the right track as they have been trying to reduce costs. I'm thinking they should just change the corp structure to stock, so they can buy back their depressed bonds without hurting the unit holders and then maybe a sale?
M&A, M&A, M&A...
Once the BOD lets the shorts escape, maybe ARNA will be acquired/sold. God forbid ARNA shareholders should make a profit, or shorts lose any cash. Are we waiting for the next useless Jack/Harry, or a deal???
I hate when shorts, using inside info, escape. How do they always know??? How have they covered 20MM shares without the price rising???
agreed, IMGN filled their opening within a month of announcing the CEO was departing. I'll assume they had a head start, but it does not take this long to find good candidates unless the BOD has something to hide and is looking for a CYA candidate, or they are searching for a buyer. If they are searching for a buyer, I would prefer an auction/competitive deal, not a private, uncompetitive deal.
thanks for the details. So unless CVOT is a bust, or there are other safety issues, which is not likely, they would have to pay up to exit. Seems like JL and Spector did at least one thing right.
Just to the opposite of what you would normally do because they own the stock and the large short position, so they totally control the price. Buy low, sell any good news. Eventually it will probably work out for longs, but owning a DF-controlled stock is not fun. IMO based on years of biotech investing and trading experience and watching these bio short hedge fund loan shark "criminals" work.
another tape painting and another day with no word from ARNA management about the CEO. Nice work!
Since my last check (about every 2 weeks) total employment based on Linked-in has declined by 4 to 225 including 1 less director (58) and 1 less VP (17). It's still bloated, but heading in the right direction!
strong call volume, but it appears to be call sales based on the prices. Maybe not if the trades were around the lows, I did not see them real time.
I was told a few weeks ago they were down to 2, but it can take time to finish the process and get the person started. I just hope they hire someone that is not a BOD yes-person and in fact I think the BOD must resign, so the new CEO can start with a clean slate. We need a turnaround specialist with strong go-no go decision making experience, strong M&A, strong partnering, strong clinical trials...no strong in misleading shareholders and sucking up to the BOD.