What's amazing to me - and a little unsettling - is that the Bakers have managed to buy all of these shares on the open market without effectively turbocharging the share price. That's to their personal credit and it's a testament to their trading skills, though it's not necessarily to our immediate benefit. Still, one had to believe that sooner or later, probably sooner, the market will wake up to what's happening here and decide that it better follow the Bakers' lead and...boom...get behind this stock big-time (and close out any short positions pronto).
I'm too lazy to add it up, but it looks like they bought more than 1 million more shares yesterday and today. FWIW, during today's investor presentation, CEO Clay Siegall expressed noteworthy confidence in the LIV-1A trial in breast cancer.
Mslans, welcome. SGEN always has been volatile. It gets played a lot by the hedgies, the traders and the shorts. I suggest that you just continually do your research and due diligence to determine if anything real is behind the volatility (it rarely is), and that you keep your eyes on the Bakers, thinking of them as canaries in the coal mine. They know better than any other investors in the world what's happening inside that company and what its prospects might be. If they're still holding or buying, that tells you something; if they start selling, that also will tell you something.
I see eight recent grayed out/ignored posts. I take it that the multi-aliased sanity-challenged math-deficient troll known as fstout57/quadhole/quadholes/rickarooski/term14/mauihope/etc. is off his meds and back again.
Renmanaz, I'm not really sure how relevant their average cost is to other investors, but the Bakers have been in the stock big-time since it was in single digits, so - even given the latest secondary and their recent purchases - their average price has to be well below the mid-30s. I would bet that it would come in somewhere in the 20s.
FWIW, that was Clay's answer when asked a few years ago about the possibility of being taken over. Basically: "We have a duty to listen to any offers, but our preference is ti remain independent and become a major pharmaceutical company." Of course, they all say that. :)
Applying Occam's razor ("Among competing hypotheses, the one with the fewest assumptions should be selected" or, put another way, the simplest proposed explanation usually turns out to be correct), I certainly agree that - with the benefit of their overall expertise and insider knowledge of SGEN - the Bakers probably are just opportunistically loading up for the inevitable high-price sale of SGEN to a Big Pharma.
And I agree that, given how they handled the recent secondary, the Bakers seem relatively honorable and considerate of other shareholders, marking on a steep curve in view of what passes for conventional Wall Street ethics.
But, again for what it's worth, another theory occurred to me last night:
We know that the Bakers can't be buying shares if a BP offer is currently on the table, but they could, conceivably, make an offer tomorrow to take the company private at, say, a discount price of $35 or even $40 a share -- not really hoping or expecting to do so but, rather, in the expectation that such an offer would trigger an immediate bidding war by various Big Pharmas, a bidding war the would dramatically raise the share price and serve all of our interests.
Again, that's just a theory to kick around and consider.
OK, so we're figuring that the Bakers - given their recent series of huge buys and their near-stranglehold on the company - plan to sell SGEN to a Big Pharma, probably within a year or so. Also, that they have no other way to monetize their huge holding because they can't efficiently sell their 37.4 million SGEN shares without dramatically flooding the market.
But...are there other possibilities? Do they have something else up their sleeves? If so, what could it be? For instance, can they be thinking about taking the company private - and, if so, what would the likely result be for the rest of us? Other theories?
Serious replies only, please. (Nothing from the multi-aliased troll - fsout/quadhole/rickarooski/mauihope/smelky/etc - will be read, since his aliases are all on ignore.)
They now own 29 percent of the company. They've bought around 3 million shares in just the last 30 days. This is extraordinary insider buying. I've never seen anything like it.
fjmardjetko, yeah, I still have a small amount. Still ahead, but obviously not as ahead as a few months ago. At this point, I'll just ride it out and see what happens.
Agreed on all counts. SGEN is fine the way it is; CLDX is a major mystery, with many unanswered questions (still ahead on a small CLDX investment, but pretty disillusioned).
And...they bought another 500,000+ shares during the last three trading days. This is really quite extraordinary.