The announcement of the Jefferies Summit was made on the 19th and Cyan's sp was trending down for the next 3 trading days, so I'm not sure the bounce from $3.5 to $3.7 was totally in anticipation of the conference. They did send the right two folks to the summit Mark Floyd CEO and Joe Cumello CMO both give a very enthusiastic presentation of Cyan's prospects.
However the big question for me (and maybe the market as a whole) is do they have enough cash to avoid another cash raise? If not, dilution of CYNI shares is in the future. I'm selling a little more at this $3.7-$3.8 level because I don't see a business-side driver big enough to overwhelm the financial concerns; therefore I don't see what will take this stock back over $4.5 right now. And if they dilute at sub-$4, I should be able to buy back all my shares at these price levels or lower.
And here's the end that I couldn't fit in the previous post:
"I would like to thank the Board for this opportunity at an exciting time of the Company's growth," commented Dr. Bal, Chairman of the Board. "It is an honor to follow Max Link, who has been an integral force in the early development of Amedica, and a valued mentor on the Board. I look forward to building upon his legacy as we build shareholder value through our relationships in the healthcare sector, and executing our strategic vision."
Seeing is believing, and right now all I see is AMDA's current share price at about half of IPO level from six short months ago.
Amedica ... is pleased to announce that its BOD has elected Dr. B. Sonny Bal, M.D., J.D., M.B.A., to serve as its chairman of the board. Dr. Bal has served on Amedica's board since Feb 2012, and is replacing Amedica's former chairman, Dr. Max Link, Ph.D., who retired from his service on the Amedica board effective Aug 20. Mr. Link served as chairman of the board since Oct 2003.
"On behalf of the Board, we would like to welcome Dr. Sonny Bal to the role of Chairman," said Eric Olson, CEO and President of Amedica. "Dr. Bal brings impeccable credentials, a wealth of relevant experience, and proven leadership. We are pleased that he will take a more active leadership role in building awareness and adoption of our proprietary silicon nitride technology."
Dr. Bal is Professor of Orthopaedic Surgery at the University of Missouri, Columbia, specializing in joint replacement surgery and ceramic bearings. He also is an Adjunct Professor of Material Sciences at the University of Missouri at Rolla. Dr. Bal is a member of the American Academy of Orthopaedic Surgeons, the American Association of Hip and Knee Surgeons, and the Association of Bone and Joint Surgeons. He is a life member of the International Society of Technology in Arthroplasty, and serves on the editorial board of several peer-refereed orthopaedic journals. He has published extensively on the biomedical applications of silicon nitride ceramics, and continues that work, with presentations at scientific forums worldwide. In addition to guiding Amedica on the commercialization of silicon nitride ceramic, Dr. Bal also leads the Company's Adult Reconstructive and Spine Medical Advisory Boards.
Dr. Bal received his M.D. from Cornell University, an M.B.A. from Northwestern University, a J.D. degree from the University of Missouri, and achieved fellowship in joint replacement at Harvard University. He is also a licensed attorney who co-founded the BalBrenner law firm in North Carolina.
A supplemental to the Prospectus dated August 7th as follows:
"The Prospectus relates to the sale of up to 2,326,409 shares of our common stock by MG Partners II Ltd., or the Selling Stockholder, consisting of:
- 1,706,667 shares issued or issuable upon conversion of an aggregate principal amount of $6.4 million of our senior convertible notes, including accrued interest, subject to adjustment;
- 50,853 shares issued to the Selling Stockholder in connection with a securities purchase agreement dated June 30, 2014; and
- 568,889 shares issued or issuable to the Selling Stockholder upon exercise of warrants at an exercise price of $4.65 per share, subject to adjustment pursuant to the terms of the warrant."
I'm trying to put this all together with the other Prospectus filings to figure out where we're at on share count right now. With conversions presumably possible at these low prices, the only way we may find out for sure is an EOQ share count presented at the Q3 quarterly. There were a lot of shares issued and sold via Amedica officers on August 12th as part of the IPO RSU's. IMO this was partially responsible for the 30% drop that day. I hope to have all the numbers put together soon.
I too have sold a little more than half of my CYNI holdings, but I won't be putting it back in here until some resolution on the cash issue. Dilutiions at whatever price seem to lock in that price as a maximum for quite a while.
Things were looking pretty dismal for CYNI last week; but now we're looking a lot better -- up nearly a quarter off of Friday's low. Maybe that earthquaqe shook things up a little in Petaluma.
Not much fanfare, but there was a AMDA BOD shakeup last Week. Hey, I wonder if Max has to give back his shares.
Departure of Max E. Link, Ph.D.
On August 20, 2014, Max E. Link, Ph.D., tendered his resignation as a member of the Board of Directors (the “Board”) of Amedica Corporation (the “Company”) and as Chairman of the Board effective immediately. On the date of Dr. Link’s resignation as a Director, he was a member and Chairman of the Board’s Nominating and Governance Committee. Dr. Link’s resignation was not the result of any disagreement with the Company on any matter relating to its operations, policies or practices.
Appointment of B. Sonny Bal, M.D.
On August 21, 2014, the Board appointed B. Sonny Bal, M.D., who is currently a member of the Board, to serve as the Chairman of the Board of the Company, effective August 21, 2014.
I agree with you that Blue Planet and SDN will eventually win out over the current router schemes; but I'm probably a sentiment player more than I'm a long term holder. Right now I'm still reeling from the Q2 report not lifting this stock up; because for me, the report exceeded expectations. But the 800 pound anchor in this room is the cash burn and likelihood of an additional stock offering – or maybe some preferred's or (heaven forbid) convertible preferreds. Every time I have ridden out some additional financing, it's resulted in the equity loosing 25-50% of it's value.
Maybe Cyan is different and it will pull thru it all better, but I'd rather get back to a full investment here after they work out the money issue. I really like the company, the innovation, the products, and the people; but I need to lower my CYNI risk as long as a money raise is on the horizon. Of course there are always those long shots (Tier 1 endorsement or buyout offer) to bounce the stock; but business as usual right now just isn't saving this stock.
I've trimmed back a bit after the Q2 report, which I considered was pretty darn good, resulted in little positive impact on share price the next day. I've been worried for some time about future dilution if they don't get the cash burn under control; and now that has come to the forefront along with some concern about Cyan's business prospect. I've still got most of my shares but I might continue to trim back if CYNI keeps trending down. And now I have one additional concern and that is the overall market trend, which I'm afraid is going to retreat in next couple months.
Zacks finally got it right. But I have to question the credibility of Zacks after they gave Cyan a SELL recommendation on March 4th when the share price was in the $3.20's and for the stupidist reason of all -- CYNI sp was dropping. A couple days later CYNI jumped 20% and this bunch of losers told us their call was right. And now suddenly to have them consider CYNI a strong buy at $3.75? Sorry, Zacks is still losers.
A stock doesn't suddenly go down 30% in one day at 10-times normal volume without a PR explaining what the motive is. I emailed Amedica last night and was prepared to keep calling today if the company did not give an explanation. I was mostly glad this morning to see the financing PR because the reason for yesterday's plunge was not related to Amedica's business performance or SiN prospects. However, I feel yesterday's manipulation of share price was totally unnecessary. Surely if Amedica's management is looking out for shareholders first, those convertible preferreds wouldn't even exist or at least would have restriction that prevent manipulation of share price.
So yesterday's 30% plunge does not refect on Amedica's business prospects. This stock is still destined to get over $5 once the manipulation ends, and over $10 once SiN takes over it's market.
The CFO should be fired over the sweet Convertible Preferred (CP) deal he gave Magna. Oh that's right, he resigned last week during the second quarter 10Q and cc. Probably to take a cushy job at Magna since he gave them a way to take over a large chunk of this company from shareholders.
CP's are ripe for stock manipulation whenever the conversion price is floating and not fixed like warrants. This is especially true for a low volume smallcap stock like AMDA with only $60K-$80K trading on an average day. Sure there are a ton of restrictions written into the conversion process, but a CFO should never ever underestimate the ruthless cutthroat tactics of hedge funds to manipulate stock trades.
So now we're down over 30% for no reason other than manipulation by Magna to sweeten their stock conversion. They would like nothing better than to own a big chunk of this company at halfprice. As far as dilution goes, how are shareholders any worse off with a Private Placement of a couple million shares at $3.5 (plus some warrants) than this deal which already has cost us 30% in manipulation and may result in even more dilution after the conversions are made. Maybe Amedica didn't want a PP since they just did the IPO six short months ago. It wouldn't look good.
Amedica is definitely not looking out for the commons.
There it is: Manipulation to the Max
The convertible notes had all sorts of restrictions on them which were just posted today. The following explains why we had a selloff yesterday with a closing price below $2.50. How naive of Amedica, to not protect their shares and shareholders better against these moneysucking #$%$. Here's some of the damaging lines:
....In addition, the Investor has agreed that unless otherwise mutually agreed upon, the Investor, upon conversion of the Convertible Notes, shall not sell more than the greater of: (i) $125,000 of Common Stock, in any five (5) consecutive trading day period, or (ii) 15% of the daily trading volume of the Common Stock on any given trading day. If, however, on any given trading day more than $250,000 of the Common Stock is traded, the Investor may trade up to 33% of the daily trading volume on that day (the "Investor Restrictions"). Furthermore, the Investor Restrictions will be removed on any day the price of the stock trades below $2.50....
Over 200K shares traded, I'm starting to think there is some bad news out there that we are not seeing yet. I don't know what, but something has the selling in overdrive. I'm even thinking of some manipulation to show a low price, but I'm not sure why.
My guess is that a lot of employees are getting their vested shares from the RFU's and cashing out right away. Remember they were promised these shares at the beginning of the year as part of the IPO. I've been searching the filings to see if I can find out who gets how many shares when. Roughly 1.5M shares vested in Q2 (I'm assuming) mostly to directors, and another 0.5M shares vest in Q3 (I'm assuming again) mostly to employees. If enough employees decide to sell their shares when they vest, we can see a 50K-100K share dump like we're seeing today and walla a 20% plunge. I've been buying on the dips today ...and there have been a whole lot of dips.
The Q2 report was basically neutral with a couple minor glitches, which I will discuss later. Soon the company will be putting out clean reports without all this stock-based compensation to muddle the numbers; by Q4 for sure. So maybe by then they can also get those 10 sales folks and 10 marketing folks to start earning their pay and produce some revenues.
What the heck is going on here? That was a fantastic report! Is the cash burn the issue or the fact that Q3 projections were only 10% up Q-over-Q. This company is going to have revenues at $30M/Q early next year if not by Q4 this year.
We need some upgrades.
No guesses since that $3.71 in premarket and current $3.80 are totally lower than anything I could have imagined. I was looking for a low of $4.0 and a high of $4.3 today and moving up from there tomorrow. Did I read the same report as today's sellers?
Agreed! The current analyst's recommendations is 3 Holds and 1 Underperform, which seems way too pessimistic for a company that just turned in 28% revenue growth and projected up to another 10% for Q3. Plus from the cc, CEO Floyd said that they had a large $10M order for some complete systems (hardware and Blue Planet) for Q1 of 2015. IMO we'll be talking revenues over $30M per Q by then. Definitely this deserves better than consensus recommendation of a little less than HOLD. Maybe a couple BUY's are needed here at least.
And there are still 1.79M shorts here, down slightly from the high of 2.06 a couple months ago. That is a lot of short shares that could be burned bad by a upgrade.
You're exactly right. Cash and marketable securities were reported to go down by $8.1M but the cash burn was $7.2M.
Wiz, as a number check, I'm getting around $12.8M drop per quarter average in cash and cash equivalents for last 3Q's. The reason I bring it up is that Ross said the Q3 rate would be higher than Q2 and lower than Q1. If it is close to that $12M average, it could mean need for a cash infusion sometime before yearend. I was surprised there were no questions on the topic.