over 4% drop today...maybe you should read what I have to say...don't ignore me.
And if such issuance was done with the market price around $7, you can expect the stock to drop about 20% that day or $1.40 to close about $5.60/share. Ladies and gentlemen, been there, done that. UNLESS, of course, an agreement comes through giving GTx money for rights. But, giving the cash at about $32M as of today, such agreements are unlikely because GTx is in no position to bargain. Of course, all this is based on the continued success of clinical trials.
Your reply about directors buying shares have nothing to do with the Topic about dilution. GTx has about $32M as of today. $42M as of March 31, 1st Q. Gtx burns about $10M per quarter. At the present rate of burn, GTx will have $0 cash by the end of the 1st q 2014. With $32m left, you don't wait until the cash completely runs out before you have to raise more. So the topic was better to dilute at $7 than $2. Usually, a dilution takes the stock down about 20%. Stock is usually discounted at least 15% to the market with new shares going out.
You can be sure that GTx will dilute, again. And if such dilution was done when the stock was $7, the next trading day will see this stock at about $5.50/share. And this could be any day now. What does this have to do with the directors buying shares? But some did sell, go look again.
Any partners would take advantage of GTx little cash. GTx in no position to call the shots. With a $10M q burn, now at about $32M today will be broke by the 1st q of 2014.
May 3, 2013 6:31a GTx Cash and Short-Term Investments $42.2M at March 31 will be broke in the next 3 quarters. The time is at hand.
This tells me a dilution is at hand. The positive for GTX is that the stock has moved up from the low $5 for over a month and less dilution needed to raise the same cash. The negative for you is that the stock will slide down $1 to $1.50 on this.
This is why I sold the covered calls for august.
'Doubt thou the stars are fire;
Doubt that the sun doth move;
Doubt truth to be a liar;
But never doubt I love.
Simply put, someone at the FDA doesnt like someone at GTX. Maybe they were rubed the wrong way - who knows. GTX has never had any luck in years and I dont think it's going to change. GTX is just bad luck, it never pays off!
Fact: GTX has had set backs one right after the other. What's make everybody so sure that another one wont come? Personally, I feel there's another one just around the corner.
all coming out of the closet this morning
SO THE SELL OFF HIT WAY BEFORE