debt= 0, nada, zippo, nothing....and Cash on Hand....about $370 MILION. So for you ....IGNORE
With a Billion dollar drug on deck and a NDA pending this stock is going to make a major move higher in no time. Note she gives not one detail about which stocks, what % of the biotechs is over valued etc. This is a generalization and I think there are some Biotechs over valued, but ACAD is not one of them.
This company took the first offer they could hook and it turned out to be $150 million. Because chances are they know this drug will be a tough sell. The chances of them ever seeing that other $775 Mil is nil. But at least they got some cash and can look forward to a few other milestone payments...but it will never be $775, never. Too much competition, new insulin Pens are out, insurance Co Pay's will be HIGH for this new product and you are looking at maybe 1-3% of the diabetic population will ever get a prescription for this med. So perhaps the company can move on to the next product. The really big negative here is this stock has created a TON of BAGHOLDERS....over and over this stock has disappointed and now a ton of investors are underwater. They may NEVER get their money back.
So for "fun" I calculated a full Fib Retrace ( 61%)using a bottom of $5.25 and a top of $11(line chart) and I got $7.49, its already past that so you might be looking at the bottom. Gonna check the candlestick numbers.
Did he make this #$%$ up or is this a well known and used term?
They are nowhere close to closing out their losing position, and most Longs & investors saw right though the MF Article. It was put out on a Friday because Fridays tend to be weak anyway.
So when the stock starts to move higher again, the Street#$%$ will put out their own negative article. List how risky it is to hold shares. They will give examples of other companies that filed a NDA that got crushed etc. Man this stuff is Old Hat.
1) Issuing too many shares 2) Most likely they had little insight of the current drug competition in the Diabetic Rx market. Unrealistic projections of 10% of the diabetic market ( that will never happen and could be grounds for a CLASS ACTION ) 3) Poor response to Shareholder Value. 4) Poor execution to releasing a new drug 5) Building too much debt 6) Poor choice in Partnership. .....etc etc etc....
After many years watching Bio Techs...I have noted the companies that put out a lot of announcements tend to put out worthless FLUFF. The companies that are more conservative with their announcements tend to put out REAL NEWS with GREAT IMPACT.
High Beta (ACAD 2.75) stocks esp biotechs, always attract shorts. Most longs here held this when it retraced down to $15+, we didn't sell then. So now the strong hands gripping tighter as the NDA approaches. Shorts starting to figure it out.
Insurance coverage is ALWAYS an issue with new drugs...believe me i have over 30 years as a medical provider.
Acadia Pharmaceuticals Incorporated
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Its the Golden Rule of short sells. Shorts are their own worst enemy. When they start covering it will POP the stock UP and many will PANIC COVER....they will be stepping on each other heading for the EXIT.