Well, it might mean that NEPH's technology is more important than ever to DaVita.
But the announcement didn't say if his leaving is directly related to company performance, as opposed to, say, a health issue or some matter of personal conduct.
Shares of DaVita HealthCare Partners (DVA -3.7%) are down on modestly higher volume after the company announced that CEO Dr. Craig Samitt is quitting on August 1, 2014. No specific reason for his departure are disclosed. Co-chairman Kent Thiry will take over with assistance from the Office of Chief Medical Officer.
Which is why I've always considered this a buyout play, not a stock appreciation play, at least for the dialysis end.
If I'm DaVita, I really, really want the trials to be highly successful, and then I buy Nephros or exclusive rights to the technology. I would not risk depending on Nephros as the supplier for a commitment of this potential size and importance.
As we send more people back into Iraq, passing on Neph's technology is starting to look like the risky alternative for the decision makers. Nobody wants to be hauled before a Congressional committee to explain why they sat on their hands while things ramped up.
Maybe. But if you're working in a desert environment, almost all water loss is via perspiration -- even though you never seem to be sweating because it evaporates so fast. Here in NM the other day the relative humidity got down to one percent, commonly 4 or 5 percent. You have to drink lots to avoid dehydration, but rarely feel the need to step behind a bush.
I'll second the thanks for sharing, CD, with kudos. We're all good and decent folks here, of course. But it's not hard to imagine saying nothing and gobbling cheap shares until others noticed this on their own, if they ever did. It required, after all, some detailed knowledge about how procurement works. And saying nothing would not even have been unethical. Aside from a few clownish spammers, this is a solid board.
Still, it's good to remember that "May you live in interesting times" was a curse...
All I want is a positive decision by DaVita, and to have it come a couple months early. If things are looking good, I wonder if they could do that by expanding the trial to include lots more patients.
But, anyway, who would be selling in quantities large enough to matter? It looks like people who own this stock are sitting on their positions, all attention focused on things to come, and not much concerned about current day-to-day fluctuations in price.
At least that's my own orientation as someone who's owned NEPH for years. If I were to dump out now at a a buck and change, it'd be my luck that the Army would come through two weeks later, and DaVita would make an early positive decision a couple of months after that. I'd rather lose the money than sit on the sidelines watching that happen.
Is there any reason NEPH can't just hunker down, sit tight, and wait for the results of the DaVita trial? If it goes really well, DaVita might even make an early decision. Houghton may believe it's in the bag, and if the Army comes through in the meantime, that's just frosting on the cake.
Same old, except the floor seems to be about $1.15 instead of 70 cents...
At $1.15 I'm up over $6k, at 70 cents I'm down over $18k.
When my wife asks how the stocks are doing, that's the difference between answering, "We're in the black and it's looking very promising"
vs. "Ahh...well....Not bad...Look! Did you see what the squirrel just did?"
Seems to argue for an RO price of about 90 cents. If that's the expectation, it will kill off much chance of a significant rise in the share price presently -- but if things go as we hope, that's of no consequence.
I'd rephrase that to "doesn't even begin to add up to what we think the shares will eventually sell for, once the market recognizes their value."
In the meantime, the only way to sell a large number of NEPH shares is to "dump" them -- a term that describes a prediction about the future. That people aren't dumping speaks to the expectations of current stock holders. That others are refusing to buy at much above $1.15 speaks to their expectations. Somebody is wrong but doesn't know it yet.
I take it back, it's not Chinatown.
It's the dumpster in the alley behind Chinatown.
IF OTC MM's saw a rock-solid successful cure for cancer, their immediate impulse would be naked short it to death, and the SEC would find a way not to notice.