They had 11MM at the end of Q1..they burn 24 million a year without sales. Do the math. If you do not have a strong balance sheet you sell stock at 50 cents and are prey for acquirers.
This stock will move when management has a call and tells its shareholders what is going on.
We need a reason for the absurd financing, We should get updated on centers and surgeons and we need some forward guidance regarding cash flow and what they need in sales to break even. Poor management is a terrible anchor to stock price. The weight loss data is excellent and when we see 48 month data it will be better for the people still on the device.
P.S. A year ago Whiting Pete was $92. It is now $29. TGP is a shipping company in LPG and LNG with gets leasing agreements.
What two firms pal? I saw nothing. Please post a link...
Oh one year ago a lot of energy companies were higher. You just did not get out in time
If they sell $200 Million in three years the price today is a joke. I just get sick of some people pounding a 35 cent stock and then you see how many shares were just sold and you ask yourself who bought them. This was not a retail deal and the selling pressure in here are the hedge funds who paid 50 cents and are keeping the warrants...Happens all the time. Market cap of $50 million?
Anyway I bought 25% of my old position at 35 cents today...Glutton for punishment!
FYI..It is a great fit. Someone else spent $200 Million to get an electroceutical device past the FDA.
If they pay $400 million it is a steal.
And tell us great one that you never missed bad management or a bad product?
T Rowe Price missed it too. Why don't you call them and ask. Gloating does not become you as sometimes you actually had something intelligent to say.
Hey..we #$%$%^%%^ up. Isn't that enough for you or should we fall on our swords?
In their favor they told us how long it would take to get the centers up an running. It is a process longer than we expected and why the dopes at the company should have realized they needed capital 6 months ago. Also their financial advice from the bankers and the board was terrible.
Of course it is an assumption. He has 15 days I think to file as an owner of 5% or more. But the guy owned 14.2% at the end of June. Do the math. He gets the warrants with the stock purchase. The guys owns a ton of stock at a much higher price. You think he got active for a reason other than he wants to get involved. Hey, he might have bought half the deal for all I know, But lets assume there are 150 million shares fully diluted. We are trading at 35 cents.
Market cap of $52 million. Do you think he understands the company is worth a multiple of that to the right buyer?
It is amazing isn't it how bad management can wreck a company. We have a year of capital and it is going to be interesting.
In his 13D filing Douglass owned 14.2% of the company. I assume he now owns 30% as he probably bought 8 million new shares and has 8 mm new warrants, That is enough to make a play to oust the existing board and most likely Knudson. He has been in the stock for a long time and his cost on his existing shares is pretty high.
The value here is dumb and he knows it. For him the best thing was the initial deal being killed as it would have created a ton of more shares. It will be interesting to watch this for a few months. Failed managements have a penchant for bailing out with some money and Knudson et al will be no different IMO
It is a good fit but they have Cyberoptics and Medtronics guys on the Board and that would create some great lawsuits as they were as responsible as management for the abortion of a financing. What I want to ask is why ETRM has not licensed VBLOC worldwide to Medtronics as ETRM will never market the device outside the U.S. I am still shaking my head at how bad management of this company really is. I am looking for a 13D filing sometime soon to see if some of the players added or blew out the stock. But answering your question, Medtronics could get insurance coverage a lot quicker than us and while I think ETRM does have a second generation device that is much smaller they do not have the money to go back to the FDA which they must. I expect this company will be acquired withing 6 months at a price between $1.25 and $1.75. They will need 30-40 million more in the next year to get VBLOC established. The company does not have the ability to raise any more money.
This management and Board has killed Douglass and the other institutional investors. Most of us also. The latest deal gave those guys 50 cent stock and 60 cent warrants. All the other options and warrants are so highly priced that the management and the institutions who own them are out. The new sale will get them even so this company could be sold fast. The company said it was NASDAQ that killed the deal that raised the $52 Million but I do not buy that. I am figuring that there is 130 million shares in float and after the recent deal. They only have 4 quarters of cash and will need more in early 2015. If Douglass can engineer a $200 million bid I think it is a done deal. I think OREX or ARNA could buy ETRM now and expand their obesity franchise. This is the only way Douglass T. Rowe et al will get their investment out. Really sad but the guys that run the company
made some terrible decisions by not capitalizing us six months ago. The need runway until mid-2107 and the large holders are not going to sit around for further dilution. At least I would not,
But the biggest threat I see now is a player like Kevin Douglass getting someone to bid for the company.
ARNA, OREX have a currency ( stock price ) and a ton of cash on their balance sheets. They could expand their obesity franchise for a song. Someone bids $1.50-2.00 for ETRM and I think it trades. Remember they also have a world class technology that we get no value for. The management of ETRM and their Board of Directors does not own enough stock to do anything about it. And there is no poison pill to the best of my knowledge. There are a lot of smart biotech players out there and they do not miss a trick. And I bet a lot of them are over weight!
Don't want to say I told you so but I hope this money is used to repay the $40 Million loan they have which I think
has a working capital minimum and I think they are close to it after paying out the $11 Million last week.
I still think if they have to wait for October and there is no 121 then you get a few more shares. This deal is innocuous but the 121 seems a bit later.
Why wake up. This company is a cadaver. Why I ever bought this junk is beyond me. Why don; they find a buyer and put us out of our misery. Their salesforce is awful.
Trapped long??/ You stupid #$%$. Costs your short buddies 30% to borrow the stock.
Empty barrels make the most noise darling.
Is there a reason you are so venomous toward ANY? You think it a fraud?
The stock has to trade under $1.00 for one year before the NASDAQ calls. By that time the company will be fine or taken over. They have one year of cash and in six months should have some reasonable cash flow.
They did the worst financing I ever saw but they had no choice as they are as a group financially illiterate.
Kevin Douglass is long a ton of stock and I wholly expect him to get involved.
But don't listen to the delisting baloney. There is still a ton of shorts and they are buying stock and trying to steal it. But give them credit. They knew management was a bunch of amateurs. Good clinical guys and scientists but they can't add a column of numbers..
Hey I am going to sign off for a while. Too many #$%$ have arrived and I have no ,more IGNORE room.
See you in a few.
You do not raise capital and lower your burn rate. Implants are secondary to unit sales.
The game is now cash flow..period