You can read the transcript, mgmt. had nothing helpful to say to analysts' obvious questions. Basically, Judy L, in so many words, when do you think you'll see another milestone payment, and at your current burn rate are you going to be in trouble? Mgmt, we don't know. Judy back again, don't know, but why? Mgmt: Everything is uncertain, we haven't thought that far ahead, look there's lots of cash, be happy (aside: we're not incentivized to keep the pps up, in fact, we're likely to better options deals if we don't), again, in so many words.
No, have some shares at around $2 and some at $1.20 or so, all in all small money, what's disturbing is the apparent managed under performance of the pps, given all the potential. I see 1) the failure of mgmt. to sell some of shelf and raise cash back in the Spring, $10m-20M at their burn rate would reduce risk, who knows what is going to happen in the ww economoy, running too lean leads to risk, leads to poor pps perfomance, 2) after positive news the pps has no support. My read is that the hedge funds (e.g., Sarissa and BlackRock et al) holding some 35-50+% have no interest in keep the pps up, and in fact have a direct line to mgmt and want to keep the pps dragging bottom, for reasons I have expounded on previously.
You gotta be kidding, good company!, Sarissa, BlackRock, they'll take their payoff in Guangdong, sell for cheap above table, institutions!?!, ya the hole in the wall gang ran an institution too, I guess.
Hedge funds control the market, especially the small and micro cap stocks, not like five to ten years ago (pre bust) when the investment banks ran the show. Investment banks were themselves publicly traded securities, and had to show quarterly profits and losses, and while they were every bit as XXX as the hedge funds, witness the CDO and CDS multi trillion dollar bust/rip-off, not to for get to mention the high beta pump and dump that all small time trades came to love, we became comfortable with that model, or, at least I did, making good money thinking like a #$%$ and swing trading. Well boys, things have changed, hedge funds run the show, and they have a different business model. They're not publically traded and they don?t have to figure out how to juice their assets every ninety days. Furthermore, they don't staff for that kind of #$%$. They hold long, let asset values appreciate, and depending on the most lucrative strategy to exit when the fruit is ripe, they move. That may be letting the share price rise by 5-10x in a short period of time (after sweeping up all the little brim along the way), or they make a double dealing sale of one kind or another to max their holding, min what's still out there. This is the new reality. By my estimate over 80% of small bios are caught in this hedge fund swamp. It may choke itself eventually, but it ain't going to be any time soon. Why play today, what else is there, 50/50 is still better odds than the tables, or fanduel, etc. (don't know what their odds are but I'll bet they're serious xxx?s too).
Small retail longs have to grasp the new reality of market valuations, hedge funds control the market, especially micro cap bios. Generally the hedgy strategy is to keep the mc low (squash any shelf) and so cash minimal, so as the target approaches a critical performance objective the hedges (usually a cabal of 4-5 with ~5% stakes each) can either drive a cash problem and force an IP sale to a hedgy owned private entity, or, pump and cash out. Basically it's a coin flip for the small retail long.
Shares held by institutions ARE included in the float, institutional shares are NOT restricted in any way by the SEC from being openly traded on the market, i.e. there's no lock-up period or company notification filing needed to trade them. The only way the float goes down is if the company buys back shares on the open market.