Borrowing the entire cost of the repurchase. I don't like this strategy to improve earnings per share.
It appears that management will borrow the cost of buying up enough shares to increase earnings per share by 12% to 13%. The cost of money is low but I don't really like to increase debt for this purpose. The annual savings in dividend payments would require many years to absorb the debt issued.
I would hope the Chinese compare results to a control group before trying to assign benefit. In recent years, some really outstanding studies have come out of China. They are free to take more risks than us and as a result then sometimes accelerate the discovery process. I am hopeful that this report is just such a case.
If they were actually close to a deal you would see price behavior much like what BCLI went through when it jumped to $8.50 over a two day period only to be disappointed by management. CUR management does not operate like BCLI so I don't think we will have a run up on false and/or implied actions. When people close to the company sense a real deal in the wind the volume will be multiples of the daily average. I think we are just returning to a share price that the management and the longs believe is the bare minimum for continued support i.e. price $1.00 / share. Management clearly does not want to be forced to reverse split shares so I believe they are quietly off the record trying to marshal up price support to avert an action that would clearly harm the company.
Actually, I think the shorts are using this lull to quietly cover. Over the last six months, the short position has steadily declined. They know that time is not on their side and they are smart enough to not wait until the word is out and then have to rush to cover. Low volume may just mean the longs are committed to the long run.
What follows is a call to respond from Investor Relations. I am not negative on the company but I do believe we can do a better job building confidence and support from the shareholders.
To Investor Relations of CUR:
Numerous posts by shareholders call into question management's commitment to support the share price of CUR. Please see below an action taken by a peer team. This was posted by the executives of Aeterna Zentaris (I have no position in AEZS). What the shareholders want to see is insider buying at market price without using the proceeds from a sale of stock obtained through warrants to fund the buy. You are all highly educated people so please exercise the common sense that drives the basic investor.
"I and other members of the executive management team believed it important to concretely demonstrate to our fellow shareholders our renewed and continued commitment to and confidence in Aeterna Zentaris by increasing our personal investment in and exposure to the Company’s Common Shares. We believe that Aeterna Zentaris’ outlook is promising and the focus is on continuing to progress on the milestones that are intended to deliver increased value and growth to all shareholders.”
If you are serious in your desire to respond to the concerns of shareholders you need to go public with your thoughts, plans, timelines (with potential positive signal events) and material actions taken by management to show support of the stock AKA insider buys with personal funds.
Please respond and share your perspective on these concerns.
Parpoopoo: It is unfortunate that investors can't enjoy a transparent and truthful dialogue with the company they support. Fortunately, we have a few very knowledgeable, well grounded, nonemotional posters that keep the discussion of the merits of the research on a higher intellectual plane. Your posts and those of Alex, Editroid, Brownlady and many others are a very welcome aside from the vast majority of the posts that seem to have a personal agenda.
Parpoopoo: I just sent an e-mail to the investor relations. The subject line was "A Call for Communications." In it I asked the company to publish a document that by virtue of a refined timeline that answers some of the questions posed on message boards would in fact build a greater sense of confidence as the long term investor patiently waits. I inserted your comment above as my example. Clearly our company is constantly under attack by posters with various agendas. Some posters however, show a deep respect for a more considered and measured approach. I asked the company to respond to the posters who have studied the merits of the company and by their comments have acted in support of the long-term success of the company. This group should be their target for communication. If the engage the poster queries that truly have merit it will only breed more confidence in the management team. If they respond to me I will share their comments.
Perhaps a long term short who just processed his probable tax for 2015 and subsequently decided to take a capital gain. Short interest has been on a steady declinenow for a couple of months. This trend may suggest a better future for CUR.
STEM up about the same so I would not read too much into the move. Having said that it is nice to see movement in a positive direction. This move is not specific to CUR.
My wife insisted on investing in KSS with her Roth account. Before investing I went shopping with her. One purchase was done on line. As we were making the purchase I spoke with a department manager about a new purchase paradigm. The idea would be to stock three samples of every size for "try on sizing" purposes only. Once the customer determines the exact size they want the purchase is then done through the on-line system for next day shipping. The customer can elect for shiping to their house or to their favorite store. The company would ship from the most cost effective site where there is no inventory tax. The company would also be able to reallocate expensive floor space or even occupy smaller stores with big savings. The customer would benefit as all sizes would always be available for fitting purposes. The final benefit would be less waste as there would be far fewer unsold apparel items at the end of the season. /the department manager was very supportive of the idea as it would require less personnel and the approach would fit well with the young shopper. The savings would be significant. He said the company is moving to a more robust use of technology and he thanked me for my thoughts. Following this conversation and noting the professionalism of the staff we invested in KSS.
Actually, the weak will fall to the strong and then the strong will hold the newly acquired production off the market. This will result in a gradual return to strength and the reserves will have been purchased rather than drilled. This movement may require a little more down side in crude price. As this may cause capitulation in some this may represent a good buy opportunity. CNX does own a lot of gas will play an important role in the world wide effort to improve the environment so CNX may also represent a good long term buy not too far down the road.
Probably the funding requirements. We need a partner for this and perhaps the environment was just not right at the time to pursue the courting of a partner. With the ALS effort moving closer to a conclusion the time is right to direct efforts to establish a good partner to develop NSI/189.
Perhaps the thinking is that a big hit in oil will drive the marginal producers to sell valuable assets that they can't sit on, but the majors could. After the fire sale, the majors will not tap their new resources until the price recovers in three years ( which is less time than discovering and developing new oil). If this makes sense then it might explain the price support.
I honestly don't buy this thinking myself. I do think the majors will need to suffer through the China worries and the pressure for producers to keep their citizens happy to avert social unrest. This is a real danger for many of the producers and that worry will keep oil flowing for a couple of years. The net impact on the world may well be to raise us out of the potential economic slow down in the developing economies.
You may not have read my premise correctly. If you did not buy below $1.27 then you would have a loss when sold at $1.27. Buying it back in less than 30 days at $1.20 would trigger a wash. You are correct in that I am not a day trader. I am however a fairly successful investor. My skill set employs basic conservative instruments involving options and working trading cycles for some targeted stocks. At present, I don't believe CUR has the liquidity to trade 5,000 share lots but since you are doing it successfully my hat is off to you. I
You plan may have some problems. In practice, you just can't put 5000 shares up for sale when the trading blocks are 100 to 300 shares. Unless you bought the shares at $1.19 you will have to deal with wash sale rules and that accounting garbage is just not worth the effort. Probably better to try you move on a runup sine CUR does not tend to hold these gains.
I was under the impression that a stop loss order cannot be executed until the price hits the target and then turns up before it continues the downward price movement. I do hope you got executed. You probably had the order in early in the day so well done.
We all benefit from well researched honest intellectual discourse on the merits of a new protocol or the effectiveness of a new biologic. The process fails when contributors try to disparage a stock in an effort to achieve some small measure of self-gain. For years, we have benefitted from the contributions of well educated and extremely patient contributors like editroide2. I know that this is an impossible request, but I would like to see as a requirement for posting a verifiable declaration of ownership. I am not talking of ownership levels less than 10,000 shares. If ownership exceeds 10,000 shares then we know at least some skins are in the game. If ownership is zero or short then that too must be disclosed. Clearly this information does not negate what is posted but it does impart some sense of intended impact. No, it will not replace from the equation the due diligence every investor must do before committing funds but it would help in evaluating some of the posts made in great abundance from some contributors.
Again, I wish to thank the many contributors who have shared with us the fruits of their personal research and their analytical insights. Your posts have added to the joy of ownership in this exciting company even as the stock has suffered so many setbacks. Yes, I do own in excess of 10,000 shares and I do support the goal and mission of this company with regard to attacking the devastating diseases of the brain that we currently support through our research funding. Our greatest hope is that the access to our capital does in some small measure contribute to the quality of life of our brothers. Our best to all the patients we are trying to serve and to the millions who currently do not have direct access to our treatments. We do hope that our treatment or that of another company will soon bring them mitigation or complete remission of symptoms and disease.