This is not the first time UNXL has been investigated by the SEC. In fact, Reed et al have run afoul of this regulatory body in earlier ventures. Sigh.
There is no question that there is a contract between UNXL and Kodak. The issue is should UNXL have disclosed more about the contract to investors.
The SEC does not investigate anything unless they already know something. UNXL may have an internal whistle blower who alerted the SEC. This does not bode well for the company. I do not like their terse sign-off . Now more lawyers will sue UNXL on behalf of share holders.
The bogus software fix will only hold off the critics for a short time. Once people figure out driving range will be reduced, the firestorm (no pun intended) will engulf this el cheapo fix.
Musk is no dumbo and is already considering options. He could harden the battery case by using steel rather than Al. He takes a hit on weight which affects range and performance. No way can he relocate the batteries. IMHO, TSLA will ultimately use a kevlar type composite battery case. Kevlar is used in bullet proof vests and is the perfect reinforcement for this application. Kevlar alone does not have the mechanical performance needed for a case. It will be augmented by carbon fiber which has superior mechanical properties. CF is being used by BMW for other car part for weight savings.
It will take some time to design, build, and qualify the new case. I see a year. It will add to the cost of the Tesla - maybe $300 each.
As a criticism of the great Musk: the el cheapo software fix is what typical management comes up with. I expected more from the genius.
TSLA announced a software fix to get around the fire problem. The fix raises the height of the car - thereby increasing road clearance. Good idea except the higher car will have less range.due to poorer aerodynamics.
Designing a thin floor pan for the model S is silly. If Tesla uses the batteries to be a barrier from road debris, they have some 'splaining to do. No doubt, the few hundred pounds gained by a thin floor added to the range of the model S. Again, this approach does not make sense.
Not quite true. The WA and TN fires did not involve reckless driving. it's easy to drive over an object. They're hard to see and swerving may cause an accident. I ran over a freshly road-killed deer one time on a highway. Just could not see the creature sitting on the ground.
PC patients that are indicated for Provenge number 30,000 per year. How can a few hundred diverted for clinical trials move the needle in sales?
The trading in DNDN suggests something is brewing. Whatever it is, it will be a take-under that will disappoint the longs. Sorry, but DNDN just ran out of runway. The first two years of Provenge sales did not impress Wall Street an this is the consequence. There is one key tell that DNDN made that tipped their hand. Sales territories will be consolidated or eliminated in the current RIF. This is like an NFL team that puts only 8 men on the field. Cutting back on the people that bring home the bacon is the kiss of death. It's like the wounded gazelle falling to the ground as the lioness advances for the inevitable take-down and meal.
There is much distance between cup and mouth. The legion of biotechs with great products that bog down after launch is large. Example: DNDN, ARNA, VVUS. No doubt the price will jump when the partner is announced. But it will take genuine sales to drive the price above $20.
If you're long the stock or the call option, the market will move their prices to be in concert with the deal. Time premiums will be almost wiped out because of the certain nature of the deal. Sometimes, equities will sell a bit higher than the deal price due to short covering. This phenomenon is short lived.
Obviously if you are long the call with a strike price above the deal price, your calls are worth nothing.
Remember when you were 20 something? Suppose you were dating three girls. But you wanted to get serious with one. During the dating process, suppose you were totally transparent and put all the details on your Facebook page. Everyone can see, including all three girls. Do you expect anything good to come out of your transparency?
The salesforce has been decimated (closed territories). This is a tell on DNDN's estimate for sales going forward. I see sales declining 5% sequentially. EU sales, if any, should be real low. DNDN is targeting the elusive "cash flow neutral" operating point. Forget about earnings: They will suck big time. A buy-out is the only solution.
The rumor that a potential buyer demanded DNDN cut people so the blood would be on their hands is bogus. DNDN has cut to the bone already. There is no fat. DNDN is not a PE play where financial people run the show with an eye for low cost. Dendreon is a technology company with good ideas and people to make it happen. Any buyer would want to keep the brainpower in the company.
DNDN is cutting because they have no other lever to pull. Once the cash is gone, the bondholders own the patents and know-how.
There are many burnt DNDN longs on this MB with some chanting the unique proposition that DNDN has to offer. Clearly sales and financial performance of Provenge has not met expectations. Here we are at $2.50 ps and DNDN needs to cut more meat to somehow get to profitability.
Longs point out that DNDN's technology gave rise to the first FDA approved immunotherapy. Yes, this is a wonderful achievement. What what is it worth? Autologous immunotherapy's goal is to use the body's natural immune system to kill cancer cells. A great idea. But Provenge's performance at fighting cancer is no better than a simple pill (Zytiga). Moreover, both therapies extend life by only an average of 2 months. How can you compare a pill to three apheresis/infusion sessions? Is this the killer app all are looking for in cancer therapies?
Given what has happened, why would any pharma company buy DNDN or even pay a premium for the technology? This is a tough set of news. But the market is efficient. No amount of bull talk can obscure the obvious.
In related news, the city of Seatlle just approved a building application for the DNDN building. Some irate investor wants to pierce the building with a fork type object. Stick a fork in it?
The capella Sistina is a small room. Aside from the Judgement Day fresco on one end, everything is high up on the ceiling. The difficulty in viewing is due to size and distance rather than light. I doubt LEDs will improve the experience. The chapel is awesome by itself.
St. Peter's Basilica is another story. It is huge cathedral that is rather dark in various places. I can see LED lighting making a difference in this setting.
Perhaps nobody was interested in DNDN.
Right now, DNDN is worth as much as Tebow is as an NFL quarterback.
ANF will soon sell large size women's wear to the Miss Piggys of the world. Will this be enough to renew growth. Probably not. ANF is all about teen sex. Images of hardbody kids in semi-gay poses is the knife edge of the message. How can selling to heavy set girls make a difference? ANF needs to have hormone charged kids attain a zombie like trance as they shop in a very loud pretentious store. Something more needs to change.
The model S has underfloor batteries from stem to stern. In the two object-impact caused fires, the fires were at the front of the car. This is the location of the impact with the battery segment that caught fire. What if the impact was further back like underneath the passenger compartment? What if the driver and passengers ignore the alarms? We could have some fried people.
I think if the sweet spot for operating Mt Pass were lower, say 10,000 mt, MCP would be in the green now. By going big to 19,000 mt, the plant is operated uneconomically. Without project Phoenix acceleration, I think the lower cash burn would have negated the need for the last two dilution events. My guess is that MCP would have been $15/share.