I'm flattered Mac how hard you're trying to discredit me. As you can see I never said to load the boat, and the shares I biught at 15.75 were in addition to my holdings. I have a core position and I have a trading position, which I buy and sell periodically, probably like you. Out discussions on this board are not about trading - they are about whether ACHN is a good value, and I think it is, and you don't.
mac - I don't think I've ever used the phrase 'Load the boat'. And definitely not at $15.58Find it for me so I can stand corrected, will ya?
This makes the company self sufficient to get through all phase 2's and makes it more attractive to an acquirer.
tek, think of it as a sales commission. Or one year's worth of interest, up front. I give you $120 million, and you give me $12 million as a fee (in the form of a discount to market). My only collateral is your stock, which could be worth a lot or a little, but unlike preferred shares you don't give me priority over common shareholders or any dividend. I live or die by your performance, but I also enabled your performance by giving you $120 million, and I also made your shares worth more by adding to your resources that you need to succeed.
hey smelky, I'm flattered you read my posts, and as I'm reading yours Yahoo turned on Joan Osborne's "What if God was one of us" in the background (;-)), but I hate to have to tell you that you didn't arrive first. Magnam and I have been in this stock since the $3's (he may have been in earlier than I). Having said that, I am happy to get on your back and charge forth. Let's go!
welcome back binary! Not sure where you've been, but I hope you brought a flyswatter - there are so many shorts buzzing around the table here that you need one plus a can of RAID.
I will certainly admit that their timing may have been off - I think they could have raised an extra $50 million. But as far as the pricing of this, it's roughly an 8% discount for a 10% dilution, and clearly Lerrink and Deutche needed a good discount to clear 12 million shares. Had this secondary happened before the GILD conference call - where they showed that they are giving ouot a 40+% discount, ACHN could have gotten more, but the truth is ABBV started that price ware well before GILD's cc with their Express Scripts deal. This is one of those cases where everyone has 20/20 hindsight. Bottom line I still believe, as I'm, sure many others do too, that this is a net positive for the company, and I think the $11.14 price at the moment reflects that. And apokerace, really, do you get off on putting a thumbs down on every single one of my posts? You're a child.
mydog, just so you know, that was me giving you a thumbs up on your comment about management knowing a bit more....
...even though it is shaping up as I thought. Mac has made it abundantly clear that I have nothing to add as a rookie. ;-)
Okay mydog, to answer your two comments - first, my "obviously" was my opinion - the price action I thought was very unusual; the "normal" pattern [my opinion] is that it drops for the day or two preceding pricing, and then it rises after price is announced, assuming it is reasonably aggressive, and then again after it closes. But it is my understanding that investment banks will stabilize the price at the narrow pricing range they are targeting for the secondary, and the fact that the price climbed today to 11.52 today from 10.88 suggests (in my world, obvious) that Lerrink and Deutche had a hand in this action today.
Regarding your second very sarcastic comment about my being a brilliant investor for noting that prices go up and down, after I clearly said that essentially by a ratio of 4:1 all of my secondaries were a net positive for me this past year, all I have to say is, did I say something to #$%$ you off? Or are you just another smug short #$%$ off that you didn't get the drop in price you were looking for today?
they could but I think they will put in a slight discount. Could be as low as $10.50. I've had very good luck with all the secondaries of stocks I hold. the only one that looks like it was heavily shorted on the secondary was ALNY. Priced at $95 and dropped to $85. But three or four others have gone up after, some quite a bit, like RCPT and BLUE.
I think the secondary will price tomorrow. Lerrink and Deutche obviously want to price this at $11 (They've been working the bid all day I'm sure), but I'm going to go with $10.75.
what an insane day this is! More than a $5 per share trading price spread in one day! Sheesh!