I'm listening to the Stiefel presentation and looking at the slides. The NEW development is that HSV trial data that has been due in Q4-2015, NOW, is slipping to Q1-2016. Vical under Vijay has never delivered when they say they will and this totally effects credibility on everything.
This is the worst Board of Directors ever! Vijay has never delivered anything. The secondary management team always keeps changing as they become aware that the guy at the top is the worst in the industry.
Vijay would argue that the move is synergistic. I would posit that it is fatalistic for the company taking him on the board. Vijay is widely know in the industry as the worst CEO in the space. Winners pick winners and losers also congregate. Now, if I was a pathetic CEO I would want the worst guy in the industry on my board, Vijay will never hold him accountable.
The Starboard letter is a warning shot to the Board of Directors that they are courting a shareholders suit. It would have merit and it would be the sort of action that makes it hard for directors to get on other boards. Ignoring fiduciary responsibility is not a good career move for people like Mrs. Cantor,
It's hard to argue with the Starboard conclusion. Over the last 5 years Nexstar has delivered nearly more than 4 times more return than Media General. The same assets in that management team's hands will clearly create more value for shareholders, simply because shareholder value is a concern for NXST while MEG ignores shareholders, unless they're on the board.
I can assure you that you have the Deb McDermitt story nailed. The company claims investigative reporting is their special sauce. If true, everything works back from that. But, there are GM's and ND's at very important MG stations that don't have a clue how stories are broken and how the impact of driving the local news agenda is integrated across promotions, the web, social media and earned media from wire and newspapers.
These guys spend more time looking for cat videos to post on social than they do on big investigations, following the change of one key person. Kim, thinks McDermitt is a good manager so he is a major part of the problem not part of the solution. I personally would love to see Scripps Howard take a run at this because they actually have a better grip on what Media General claims to be doing.
The first two paragraphs of three broadcasters earnings story. Media General's surprises for Wall Street are all bad news. There is no way institutional investors who own more than enough of the company to end this debacle are going to allow this sort of under performance to continue when more financially successful managers will pay a premium to acquire the assets. The corporate spin about improving ratings don't matter if they can't make it flow through to the bottomline. The other guys can do that,
IRVING, Texas (AP) _ Nexstar Broadcasting Group Inc. (NXST) on Tuesday reported third-quarter earnings of $17.3 million.
The Irving, Texas-based company said it had profit of 54 cents per share.
HUNT VALLEY, Md. (AP) _ Sinclair Broadcast Group Inc. (SBGI) on Wednesday reported third-quarter profit of $43.3 million.
On a per-share basis, the Hunt Valley, Maryland-based company said it had profit of 45 cents.
RICHMOND, Va. (AP) _ Media General Inc. (MEG) on Thursday reported a third-quarter loss of $55.9 million, after reporting a profit in the same period a year earlier.
On a per-share basis, the Richmond, Virginia-based company said it had a loss of 38 cents. Earnings, adjusted for asset impairment costs, were 3 cents per share.
Wall Street isn't so dumb as to give Kim the money for a private deal. He has built assets that are worth more in the hands of other operators. Moreover, he made a large sale of Media General to get money for Radio Shack, so his hands are full.
The spectrum auction and bidders circling the company have produced more value for shareholders than the ongoing enterprise. Media General simultaneously claims performance improvements drawing higher audience shares and financial performance that far lags Nexstar and Sinclair.
I think the station improvements are very hyped and the lack of financial performance vs direct peers is evidence in the extreme of bad management. This is Kim's management team! They want Meredith to put these managers out of their misery so Media General knows this has been a failure. I am not a big Nexstar fan but if Wall Street is convinced Nexstar can produce margins like they announced this week with the Media General stations they will have the ability to pay more for the stations than Media General can refuse.
I don't think there's much doubt that disclosing the $17 a share offer would have caused a sale by the institutional investors who control MG. The lawsuits on this issue have merit and will cause MG huge trouble unless they give the stations to someone who can match Sinclair.
The BBC reports this, yahoo won't accept the link. BUT, I posit this will make the Herpes vaccine a big commercial winner if the lesion reduction stats hold when the final data is revealed. Lesions make you lonely and the apps are causing more people to have these lesions.
I sincerely wish I had never heard of Vical. I think the company's true colors are shown by the continued employment of Vijay Samant when his record has been one of unmitigated failure. But my losses are so steep, fueled by averaging down in violation of all common sense, that it now makes more sense for me to hang on and hope they survive long enough to get a product out of the pipe, creating some kind of market capitalization. I do think eliminating lesions on the genitals of sexually active people is something even Vijay Samant can market. I don't care about shedding, it's all about bedding. People who have lesions don't have liaisons so this vaccine may just make it yet.
The conference call leaves me convinced that Vical will announce the Herpes vaccine is alive in the first
quarter next year. Lesions are not a secondary consideration for a sexually transmitted disease. If you have outbreaks you won't have action. Simply keeping the lesions in check is enough to get this launched as a successful product. I hear Vical figuring this out.
That would be great but the management team he has in place is so bad he was trying to replace them with Meredith management. I think he will have a hard time raising the outside money without some new name as CEO that will make it rain dollars. Kim is also in the midst of a plan for Radio Shack and Wall Street is very skeptical of that risk. Two front wars don't normally go well. Kim's hand is much weaker at MG because he sold so much to raise money for Radio Shack.
Nexstar offered $17 a share on August 10, now they see a chance to grab it for nearly $320 million less. MEG's BOD better get this this stock back above $17 fast or the lawyers will be swarming. The MEG assets are compelling but OMG, the management is not making investors any money.
Vical is a zombie company until it gets something out of the pipe. This just perpetuates the odor of failure that has been attached to Vical over Vijay's entire stint as CEO.
With Vijay's track record raising money through a shelf offering followed by bad news on a key trial would make Vical toxic. They better be saying we have excellent results and we're raising money to make sure we're first to market. Moreover, we're going to push CyMVectin because we're so confident following the HSV trial.
BELOW IS ZACKS ON THE DAY THE DEAL WAS ANNOUNCED. IF A TEST IS WORTH 8.3% GOOD RESULTS SHOULD BE WORTH TWICE THAT, ONCE THE MARKET FINDS OUT.
Vical Incorporated (VICL - Snapshot Report) shares jumped approximately 8.3% after the company announced that it has entered into an agreement with a Japanese biopharmaceutical company, AnGes MG, to develop and commercialize an equine polyclonal antibody therapy for patients afflicted with Ebola virus disease.
As per the terms of the agreement, Vical will develop and provide AnGes a DNA vaccine encoding the glycoprotein antigen of the 2014 Zaire strain of Ebola virus. AnGes will gain exclusive development and commercialization rights to the equine polyclonal antibody therapy in Japan. AnGes will also fund all development costs.
In exchange, Vical will receive an upfront payment and will be entitled to royalties on net sales. Vical will also get a percentage of payments received by AnGes, if the latter enters into sub-licensing agreements.
The AnGes Japanese website has a news release today indicating the Ebola vaccine test conducted in partnership with Vical produced good results and that development of the vaccine will continue.
If the HSV-2 results are good they will create a halo effect for the CyMVectin prospect and set up speculation on acquisition to market both lines. Because Vical market cap is so low, the speculation will show a strong possibility of explosive upside potential.
Vical's current market cap is due to the anvil effect of Allovectin-7 and the pathetic communication of CEO Vijay Samant, before and after that debacle. These results had better come out within the time frame Samant has stated, because his total lack of credibility, due in large part by long delays despite assurance of data. The Gates deal was a big turning point for me because he is giving the biotech space great personal attention and Vical wouldn't be allowed into his tent without much due diligence by a world class business leader.
Bill Gates Mom was a member of the Board of Trustees at the University of Washington. Given the partnership between U.Wash and Vical, it is likely that Gates has pretty good access and knowledge on what's happening with the Herpes trial.