$0.60 ~ $0.70 looks to be a moderately safe zone, and over $1.00 look to be very much realistically possible too depends on how Kovner brings in his trick.
Great. I am happy to see what is happening lately with Snta, but at the same time I feel so stupid somehow watching my own little money being played in someone else's hand (Kovner's) Ha Ha Ha. Just get me to the dollar. I will not complain. Good luck to you all.
As it was mentioned before, even if Madrigal, in the worst case, does not have no cash, the new company will start off with $37.5 (including the new cash injection of $9) millions cash plus whatever the both companies have as other tangible assets, and this gives me piece of mind.
There is not guarantee on anything in the stock market, but considering everything that is happening lately on SNTA, it looks to be a very safe bet to recoup your loss if you can average down to $1.00. GLTY
Amid the extreme volatility, pps touched $0.42 today that it may attempt to go near or close to 200 sma tomorrow. This stock is coiling up and getting ready for the huge surge. Current institutional holding is 46,203,854 millions shares by 95 investors which make up over 33% of the all outstanding shares (Source: NASDAQ). I am almost pressured to say the big guys definitely knows something, and planning for what is about to happen. (It is like watching a well-produced movie everyday... :-D)
I had a chance to talk to a person I know about SNTA, whose full time job is stock trading (not security broker, but he is heavily investing in many biotech and pharmaceutical companies), and his near term prediction was same as yours. One thing he went further was that there is a possibility for the share price go back up to pps level before the phase III trial termination which is over $2 after 200 sma ($0.47) breaks and if the company decides to extend the delisting deadline to Nov. 30th by temporarily switching to NASDAQ CM, instead of doing the reverse split beforehand. Just one person's opinion, but if makes a good sense considering the fact Snta's (or Madrigal as a new merged company's) research pipe line will be fill with the new trials as if the company is a brand new company in the stock market, and actually it will be the new company. Just wanted to share what I heard...!
Since there has been no mentioning about snta's existing clinical trials, we can only guess right now. IMO, they are being mentioned because they are in the course, OR the companies (snta and madrigal) are currently examining to see whether to continue or not? Either way, the new focus is on madrigal's clinical trials not on synta's. May 5th earning report & cc will probably tell more about it.
I emailed snta's IR asking what is the asset (total and net) of Madrigal, but no answer (I did not think I will get the answer anyways.) Well, Madrigal can have surprising amount of asset or possibility of not. However, rather than the total (or net asset), what is truly count in biotech/medical research/pharma is their actual cash/cash equivalent position. I'm sure Madrigal has some plus $9 millions committed to be invested. In the worst case, supposing Madrigal has absolutely no cash/cash equivalent, the new company will start with a minimum of $37.5 millions ($28.5 mill of minimum cash requirement from Synta as a merger condition - I think there will be more, and $9 millions of new investment.) Even with this worst case scenario, it is actually not bad to start the new venture with that kind of cash because they will able themselves to the immediate cash by public offerings of new shares after reverse split without impacting the shareholders' value and interest. The new company can truly be a cash rich. This is where I give the high grade for this merger plan because it creates the win-win situation not just for the company but for the shareholders because we don't need to be anxious, angry and worried all the time about discounted dilutive offerings all the time. Let's say they do 1:10 reverse split at $1.00 pps, then the outstanding shares will be about 40 million shares more or less. Hypothetically, now at around $10 pps, issuing 60 more million shares will easily fund them $600 millions. The merger is engineered to provide the necessary funds for many years without scaring off the shareholders and investors until and beyond the phase 3 stages and approval processes on their currently tested drugs. The questions is whether the drugs will be successful for commercialization? Well, it is too far off to think about., but in the mean time, we can invest, day or swing trade, or whatever we do to make some great profit. Best Luck To You All.
What a peaceful day it is today for this message board without having any short bashers (maybe I shouldn't have said this..) Anyways, I feel the same about what Kovner will do for his money. Many people on this board exchanged the opinions about what is given as the facts - Merger that contains ongoing major trials of both companies, Enough initial cash position, The condition of merger to keep the stock on NASDAQ by the merger completion (have until May 31st on Global Market and another 180 days on Capital Market), Reverse Split is due whether or not the share stays over a dollar most likely unless it goes up to $2 + range (which is NOT impossible depends on how and which direction Kovner will drive this vehicle.) I just wish that all the longs who have been holding this stock since pre-galaxy trial-termination would be able to recoup some of their loss in a short period of time. I think it will happen.
From the post of djpope2c; Dr. Paul A. Friedman, M.D., is a Partner of Vilicus Ventures, LLC. Dr. Friedman is also a Cardiologist and Professor at Mayo Clinic. He is also a Professor of Medicine and a consultant of cardiovascular electrophysiology. He has more than 20 years of experience in the pharmaceutical industry. He served as the Chief Executive Officer of Incyte Corporation from November 2001 to January 13, 2014 and also as its President from May 2004 to January 13, 2014. From 1998 to October 2001, Dr. Friedman served as the President of DuPont Pharmaceuticals Research Laboratories. From 1994 to 1998, he served as President of Research and Development of The DuPont Merck Pharmaceutical Company. From 1991 to 1994, he served as Senior Vice President at Merck Sharp & Dohme Research Laboratories (Merck Research Laboratories). From 1985 to 1991, he held several executive positions there. From 1974 to 1985, Dr. Friedman served as an Associate Professor of Medicine and Pharmacology at Harvard Medical School. He has been Executive Chairman of Cerulean Pharma Inc. since October 29, 2014. Dr. Friedman has been Director of Synta Pharmaceuticals Corp since March 2014. He has been a Director of Cerulean Pharma Inc. since January 2014 and Durata Therapeutics, Inc. since May 16, 2013. He is the Vice Chair of Academic Affairs and Faculty Development at the Mayo Clinic. He is the Vice Chair of the Division of Cardiovascular Medicine at the Mayo Clinic. He has been a Non Executive Director of Gliknik, Inc. since February 25, 2013. He has been an Independent Director of Navitor Pharmaceuticals, Inc. since June 2015. He has been a Director at Incyte Corporation since November 2001. He has been an Independent Director of Verastem, Inc. since May 2014. He served as a Director of Auxilium Pharmaceuticals Inc. from June 2010 to January 29, 2015. He served as a Director of Sirtris Pharmaceuticals, Inc. from March 2008 to June 2008. He served as a Director of Bausch & Lomb Incorporate
We will find out Friday's short volume on Monday. Knowing not much of the shorts are in play, pps will start shooting up again soon.
I guess you were smelling the merger, and obviously the institutional holders all knew of it.
One of the conditions for this merger is keeping SNTA on NASDAQ. Please read, and stop the nonsense.
I don't normally give anybody thumbs down, but sorry, I have to this time.
I believe this is a very ideal merger. I hope that this can be the opportunity that your accumulated loss turns to profit.
I agree. I added more this morning in pre-market. I will be happier if this surge leads to going over a dollar. As many believe, I am one of them. GLTA.
Indeed. Not like some thoughtless pumpers have been stressing in this board, shorts are not doing much about downtrend pps. It is actually 'DILUTION' in this type of biotech stocks, and the dilution is the way of providing necessary that it is essential. I just wish that the recent price movement has settled at a higher level so it could have enough cushion for the next dilution coming.