This market could easily end up giving back close to everything it picked up in the recent QE sugar rush if things start to go sour from here. Therefore, exercising some caution here in the near-term, I believe would be prudent at this time.
After taking a quick look at the report...it seems the real reason why the party may be ending for HFL, is that HFL's net debt has exploded in the past year by over $1 billion. In other words, all the company's cash creation and all of its debt issuance in 2014 has gone exclusively toward buying back its stock.
Let's see... (LOCO) IPO'd at $15 last Friday, opened at $19 and today explodes to almost $33 at a mind-numbing ~20x EBITDA (market cap now over $1.2 billion on a $53 million EBITDA)... crazy zhittt chicken indeed...!!! Yup, I'll be shorting this POS soon as well.
Hopefully, I’ll be able to buy another 10K shares around the $6 range… Lower if possible, but I highly doubt that will happen.
In fact, I suspect the best time to buy will be in the pre-market on Monday morning—where I’ll be able to pick off some really cheap shares from panicked swing & daytraders would probably bought Friday on margin.
Anyhow, have a great weekend Jeff…and if possible, try to take advantage of ACRX's pullback on Monday because in half a year’s time from now, you’ll be thanking yourself if you did.
BTW, and just to clarify, I wasn’t always a big fan of biotech—especially in the past, but after losing 3 close family members from cancer in the last 5 years, I started to invest... Mostly in companies with products I can understand and believe in… And I believe ACRX is one of these companies, which is why I have more than $76K (or nearly $200K worth on paper as of this past Fri.) invested in them presently. Hopefully at some future date it will pay-off--not just financially but also in the field of medicine as well.
No one here truly knows how much of a pullback ACRX will suffer on Monday.. I for one will be looking at a substantial paper loss as well.
Sobshit, my 10 yr. old owns more than you are worth.
Horrible news indeed... This only means more delays & dilutionary offering. Can't wait.
#$%$, I should have sold at the close today and kept the call options only.
"AcelRx Pharmaceuticals Receives Complete Response Letter from FDA for New Drug Application for Zalviso™" – Was just posted on the company’s website.
What this means for investors is that the FDA’s issuance of a CRL (complete response letter) indicates the following: (1) that the review of the application by the FDA has been completed, and (2) the FDA wishes to communicate to the company that its application to market a drug (NDA, new drug application) will not be approved in its present form.
However, this isn’t ALL bad news…because sometimes an application can still get approval if it's amended and resubmitted, which I'm sure ACRX will do.
Bottom-line…expect the PPS to pullback on Monday… Possible substantially prior to the release of further PRs from the company outlining the exact contents of the CRL and how the company intends to address them.
Either way, I will be a buyer next week… Still believe ACRXs drug, Zalviso will be approved at some later date once the company addresses the FDA’s concerns outlined in the CRL and then resubmits its application. I’ll just hate that in the meantime, I could be giving back over a year’s of profits. But then again, I like to think of it as another buying opportunity.
You really need to get a life and a real job liar... Maybe then you'll stand a better chance of getting laid.
The stock is still halted and yet I'm oddly calm... Definitely a strange feeling!
Under $500M market cap—small float (43M), w/ shares still trading under $11 presently.
Some of you risk takers out there might want to pick up a few shares today… Could turn into another PCRX.
A word of caution, even if the company’s drug is approved by the FDA the PPS might not appreciate much without a partnership deal follow-up announcement… So keep that in mind as well.
And used the proceeds to buy more Google... Stupid move on my part looking back now.