LOCM market cap under $10mm. MNI just hit new 52 week low with market cap of only $100mm now.
Turn out the lights, the party is over. Actually, the party was very short-lived with the SPMD/DEXO merger that allowed shareholders the opportunity to recover some of their losses or grab some incredible gains if they timed it right.
Not much hope now other than a bounce on another batch of short-covering to lock in gains and move on to the next carcass.
What is more apparent is that, even though the stock is trading at just under $1, the market cap is well under $20mm. Market is basically saying that equity is worthless.
I have been warning about this ever since the realization that DXM was having difficulty converting print customers to digital as well their inability to retain digital customers over time. I questioned, like a few others, the synergies between SPMD and DEXO from the merger and always believed that SPMD was in much worse shape than DEXO and would be a dead weight on the combined entity.
Sold my last shares at $15 on the way down. I told everyone here that I dumped it all and have continued to warn them to get out at any opportunity. DXM rallied a few times offering those opportunities to get out and reduce losses. Now, all that remains is maybe a tax loss.
I am really saddened by what has come of this company as I really believed in DEXO a couple of years back. I knew they had work to do with their digital offering, but thought they were on the right track. The merger actually turned out to be a gift for DEXO investors IF THE SOLD soon afterwards. The market took the PPS to an unrealistic valuation based on the huge debt that still hampered the company.
Market has spoken. Of course, DXM management spoke very loudly when they released those Q1 numbers.
Market says DXM worth less than $1 per share now. Market cap suggests that the equity is basically worthless and its only a matter of time before equity is wiped out - again.
Another point. Think about who is purchasing those shares. Imagine trying to place 250mm shares at .60. Many funds and institutions would not be able to participate due to the share price.
The 20:1 reverse split was an attempt to get the share price much higher that the $5 minimum requirement for these groups to invest. Quite a bit of pressure now to get PPS to hold so that these institutions and funds can still come to the table.
I have argued many, many times before with different companies that need cash that there is a better way to do things to protect shareholder value. Again, in this case, management is royally s c r e w i n g over shareholders. Standard operating procedure here on Wall Street.
FWI - I responded to a thread yesterday started by Evalyn directed to me. The thread disappeared and my response is gone as well and is not even showing up in "my posts."
Deviateur is the uranium and mining expert. I like to think of myself as a trading and financial expert, although I fall somewhat short of expert for sure. No, we are not the same and, heck, Deviateur does not even like me as he believes I am a posting and stock trading manipulator.
I do not post much and only on a few boards. Been watching the demise of DXM, the pain in MNKD, and the recent dramatic fall in PPS of EOX that just had to do a 20:1 RS and is getting ready to price a huge offering to raise capital. More pain ahead?
I do not know if you own URG, URZ, UUUU, DNN or any of the other players. My sentiment has not changed in some time and I believe that they are all too risky to hold currently. I still sense that they will all are heading lower. This is not to say that there are not trading opportunities there, but they need to be very well timed. Looks like Evalyn has done a nice job trading them in past several months.
Much easier to place 25mm shares than 250mm shares.
Doesn't make sense from shareholder standpoint, but makes perfect sense from financial standpoint for the company.
Before: 60mm shares at .60 with market cap at $36mm with little cash.
After: 30mm shares at $6 with market cap at $180mm with an extra $150mm in cash.
Original shareholders end up with only 1/6 of the company. New shareholders get 5/6 of the company with a dramatically improved company financial.
Management absolutely s c r e w e d over shareholders. What choice did they have? This is the Wall Street way.
We call that equity destruction as opposed to equity dilution.
What is the difference between this and a prepackaged BK? At least in the prepack, shareholders and creditors get to vote on how much they are going to get bent over.
Another raping of shareholders in a publicly traded company.
Would be nice to see someone buy up over 50% of the offering, take control of the company, fire management and oust the BOD.
How about the financial condition of the company? (Remaining debt and cash bleed after restructuring things with cash raise.)
Looks like $6 area could be on the horizon with an offering in the $6s. That could create at least 25mm new shares which dramatically dilutes existing shareholders. Almost like selling the company to a new owner.
Does EOX deserve a market cap of $180mm or should it be higher with $180mm in cash?
Based on the PPS tanking below $9, it will be interesting to see what the offering price will be now. EOX needed some group to support the PPS closer to $10 so that the offer price was maybe slightly under $9. Now, is it possible or even probable that the offer will be under $8. That is less than .40 per share pre-split.
Here are the big questions. What is the financial condition of EOX after raising $170mm in cash? Will their financial situation improve to the point that BK risk is off the table AND position the company to survive at least a few more years if oil prices are stagnant?
"Trying to fool honest people to sell you their shares."
Wrong. They are trying to get you to buy the shares they continue to short. Obviously, you do not understand what is going on here (as well as those giving you a thumbs up.
OPC - If you do some research, you will find that WM did not have liquidity issues and did not orchestrate their own demise. WM was not allowed to be placed on the do not short list with other banks even though they requested it. WM asked the government what more it wanted as it already had implemented one plan to support its financial position and was already prepared to implement another plan. The government seized WM to help get TARP passed which occurred only days after the takedown.
Also, JPM was in much bigger trouble than WM and the government used WM's assets to support and save JPM. WM was not part of the "clubby few."
It has been a painful ride as a WMI shareholder, but I did load up on preferred shares and debt during the BK that allowed me to recover my losses and actually make some money.
Now, WMI, the holding company of WMB, trades as WMIH after BK emergence with the share price going from $1 (fair value) down to .50 to now at $2.75. Too bad I did not load up at .50 as I had grown tired of the whole mess and could not grasp at what value may be left with WMIH. Still wondering.
Part-time? More like a hobby. WMIH has no business other than a reinsurance company in runoff mode.
How can WMIH be so sure that the company they are going to acquire does not have solid management to run the show? Think hard about that one.
GS orchestrated the takedown of Washington Mutual Bank. There were ONE BILLION (mostly naked) short shares when the government seized the bank. That would be 2.7 billion shares outstanding versus 1.7 billion actual real outstanding shares. Am sure GS made a fortune on that one too.
GS had a fiduciary duty to properly represent WM and screwed them behind closed doors. Shareholders tried to bring litigation against GS, but gave up. Attorneys never released reasoning behind giving up. Probably a battle that could not be won against big money and big connections.
Why buy now? Recovery, as per Matt, not 'til August. Even speculators "hoping" for things to turn are unlikely to start buying until end of June or early July.
Likely will test low and maybe even drop another notch or two as a response to ongoing weak script numbers before we see some type of recovery. Initially, the move up will be from spec buying and some short-covering. Then, it will be up to MNKD to deliver to produce a meaningful move to share price. When I say meaningful, I am only talking about a move back above $5 in near term. :-(
My assessment of a drop to $3.50 was right on the money based on the continued lack of support for this stock based on the poor script counts. Because there are unlikely any positive catalysts to move the stock higher in very short term, look for each subsequent release of script numbers to take the stock lower.
Timing of Sanofi's second, or what we could argue is the "actual", launch coinciding with advertsing will provide an upward spike in share price. Right now, I suspect that it may be as early as July 15th (beginning of Q3). Thus, the anticipation of the start of this launch could get speculators buying up shares as early as June 15th-30th. If the consensus is that the launch does not start until Aug. 1, then buyers may not come in until start of July. I would not be a buyer until there is some indication of an upward trend in stock price and/or a jump in script numbers that is confirmed by numbers the following week.
Script numbers are the key and have been for some time now. Weak script numbers along with additional negative PR could take share price down to just under $3. If the launch does not produce a swift upward trend in scripts, then share price will tank to below $2 and it will be a painful ride ahead.
Thanks for chiming in here. Noticed you rarely post. Shareholders just do not want to understand the reality that DXM does not provide a viable and competitive product and is failing miserably.
I held hope that DEXO would make the transition, but taking on SPMD was a huge mistake. Just created a larger burden and it hindered DEXO's ability to advance its digital platform.
I exited for good at around $15 per share when share price turned south and it became obvious that print customers were not converting to digital. Been warning ever since that there were major fundamental issues that were going to prevent success and surely result in another BK. Creditors may just try to sell off the remaining carcass in a liquidation with most of the value coming from the customer database (that continues to dwindle.)
I am not even a buyer here at $1.28. :-(