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Novation Companies, Inc. Message Board

dd888i8 8 posts  |  Last Activity: Aug 13, 2014 7:35 AM Member since: Jul 12, 2006
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  • dd888i8 dd888i8 Aug 13, 2014 7:35 AM Flag

    True, sale has been dismal, simply because it's a pioneering therapeutic method to treat cancer. But, the future prospect is nothing but great and spectacular. Now, whether the folks at Dendreon can see that day is another matter. Some visionary company will see that future and snap it up. It's a matter of time!

  • Reply to

    My Real Concern

    by emjacl Aug 13, 2014 1:35 AM
    dd888i8 dd888i8 Aug 13, 2014 7:30 AM Flag

    Hahaha. That's funny! If the old geezer(s) would dare to ask a judge for a liquidation, even he'd laugh. Then, there'd be an avalanche of lawsuits coming for breaching the fiduciary duties as the BoD has yet exhaust all options over or under the table.

  • dd888i8 dd888i8 Aug 13, 2014 7:22 AM Flag

    Shorty, you're lying. The BoD showed JJ the door could be because he didn't want to do a "fundamental transaction" to sell the company and instead trying to keep the company independent by way of finding a "partner". That didn't work. Now, it's time to sell!!!

  • Reply to

    Leerink Capital and Dendreon meeting

    by anakiin Aug 12, 2014 8:12 PM
    dd888i8 dd888i8 Aug 13, 2014 3:27 AM Flag

    Just curious for the sizable fees it pays why not pick a larger WS firm...

  • Reply to

    10Q

    by marketbuy2002 Aug 12, 2014 11:59 PM
    dd888i8 dd888i8 Aug 13, 2014 3:24 AM Flag

    Agree. And, it appears that the new CEO is hand-picked by the BoD to do a "fundamental transaction" to sell the company while the old CEO might want to see it as a stand-alone entity. This 10Q can be seen as a battle-cry, to spell out the urgency and the uphill challenge, thereby making the concession of an purchase offer easier to swallow, even if it means to dilute the current shareholders' "value".

  • Reply to

    My Real Concern

    by emjacl Aug 13, 2014 1:35 AM
    dd888i8 dd888i8 Aug 13, 2014 3:17 AM Flag

    That doesn't seem true. If you look at the company's IR website, 08/12/14, it just filed a SEC registration statement to issue additional shares for its Employee Incentive Plan. While its stock tanked 36% it filed that common stock registration, it didn't sound like the company intended to have all its shares gone worthless. Not a chance!

  • dd888i8 dd888i8 Aug 13, 2014 3:12 AM Flag

    BK is hardly coming, more like a M&A is coming. Provenge and the related IP are to be sold to the new company, with the current shareholders getting some cash + the acquirer's shares in some diluted fashion. At the least, that's what the 10Q says.

  • dd888i8 dd888i8 Aug 13, 2014 3:00 AM Flag

    It leads one to speculate the way the current Q is filed, is the direct result of a in-fighting between the incoming and out-going CEO. The language in the current Q's MD&A, particularly its tone, is dramatically different from that of last Q's. It implies there are differences in views regarding the future prospect of the L/T debts. Perhaps its auditor E&Y wants it to be disclosed. That's why JJ has to go. The last Q was under the leadership of JJ, not the new CEO. Perhaps JJ didn't like the characterization in the 10Q therefore refuse to handle the call, and the new guy didn't want to have anything to do with the old quarters, therefore, the 10Q was hastily filed to meet the deadline, and became a shocker. To the new CEO, however, all bad things are out, and a lowered expectation is set. Going forward, it's a clean slate.

    Now, about the "fundamental transaction" verbiage, it only means in the event the company is sold or dissolved in some manner. It's typical SEC mandated verbiage. If you notice it, the convertibles were construed as L/T debts not equity because its accounting policies dictate to treat them as L/T debts because of the features that may reset the number of shares. It's also mandated by SEC. Now, why all these are included in the current MD&A? Because the SEC rules require full & total disclosure of liquidity risks. It's rule-driven.

    What's interesting and different about the current Q is that spells out the alternatives relating to a possible "fundamental transaction," meaning the sales of the company. Remember, the company's book has $2+ billion NOL, and that NOL can be seen as sort of "tax assets" to offset an acquirer's income. For example, a big pharma has quarterly income of $2B w/ an effective tax rate of $35%, it can acquire DNDN, and use the existing NOL wipe out its income, resulting in $600mm in tax savings, that can easily offset DNDN's L/T debts. Case closed!

NOVC
0.274Aug 29 3:57 PMEDT

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