What a scam.
A lunatic for a CEO, artificially propped up stock price. This is the worlds greatest short opportunity. They have less than 1-years operations for cash and tapped out credit. This is a screaming short.
Why stop there? SRPT is up compared with some of those companies who are going bankrupt, books are cooked, failed in clinical trials, or whatever other lethal problem they have.
Radware is down 22% today.
Illumina is down 14% today as they reduced guidance. Oh way, SRPT is down more than that one, so that doesn't help.
Other stocks that are going bankrupt are down more, so you are right, compared to them, SRPT is a winner!
You can make any excuse for it that you want. It is laughable how you try to use $39 as the "baseline" instead of the closing price from yesterday which was $41.79. The "new math" approach doesn't fly.
The "lunatics" you refer to are OWNERS in the company. A concept you appear to be unfamiliar with.
If you want to see a lunatic, look in the mirror, because THAT is the person excusing the company for causing a redirection in share price and hurting shareholders. Then again, maybe you are a short seller and that is why you are so gung ho about hurting longs.
When does it start feeling good? Someone remind me. Down 10% on this move that has board members ecstatic in their blind support of the CFO.
Only kids who want to appear worldly and wise want to legitimize a secondary offering like I'm reading here.
Luckily professional money managers do know the difference, and they own the lions share of the stock. They will be able to put sufficient pressure on management and the BOD to make management changes if warranted. This is one of the cornerstones of activist investors and why they routinely change management.
Sadly, too many on this board take a socialist approach and want to hurriedly approve of a really bad move that hurts shareholders. They don't understand what it means to own a company. If they were 100% owners, they would never allow it.
Legitimizer words used to try to justify something questionable by attempting to trivialize the real downside to the action.
Let's try it again, the other way:
If only they had just used the money from the loan they just secured.
If only they were wise enough to just realize the long term damage they were doing to shareholders.
It would be wise to have not harmed shareholders in this way. If only they had just found another way.