For someone who can invest Millions (as you claim), you sure have too much time on your hand to post here all the time! No disrespect but we both know if you are telling the truth or not!
The answer is easy, they can use it for funds to run and operate a company! If the stock goes to 16 or 20 not that many people will have any of these questions!
Are you new to investing? Management of publicly traded companies don't have to get permission to make their decisions nor they have to explain every move they make. Also, if you do get a chance to question them they can give you a canned answer anyway!
The answer to your question can be a number of factors. Just because the offering was at 9 that does not mean that the supply /demand ratio for the shares short term can not take the share price below 9. Some of the longs may be selling, some may be shorting, etc. If there is any good news that would be that we still have a company with a drug that has a good chance of getting FDA approval and if they do if they have substantial sales and earnings it can bode well for the stock. But this will not be in matter of days, weeks or a couple of months, it will take time. When the big boys underwrite an offering they try to build good chunk of upside by bringing the offering price as low as possible for the offering.
Did you ever think that the management of a publicly traded company puts the interest of the shareholders ahead of his/her paycheck, perks and benefits????
The big boys always do their best to have as low cost as possible. Whether they keep the shares for their own accounts or distribue it to their clients, they want to make sure that there is enough upside.
You are being naive in my opinion. When you buy shares of a company in reality you are trusting the management with your money, for the most part they can do as they see fit.
You raise a valid point. Although your view can be considered as the glass half empty. The offering can be seen as the management not having full confidence in getting the approval or at least lower probability of such event. IF we want to give the management the benefit of the doubt we can say that they are being prudent and want to be prepared for the worst case scenario. If management had unloaded any of their own shares as a part of the offering that would/could have been the kiss of death but they didn't (as far as I know). So at this point either we must hold and hope for the best or sell and move on. (IMHO, long RMTI, do your own DD).
You raise a valid point, even if a drug is approved the question remains, how much will it bring in and only time can answer that question. It seems that there are a number of posters here that either are very new to investing or are not realistic.
That potential is there, however I don't think the shorts will cover in a hurry. I believe that come late January we may still have a relatively high short interest in the stock.
Many longs including myself are disappointed by the offering, it's price and the stock action but it is what it is. Dilution is never fun for shareholders but the future will tell if it was a good idea or not. If Triferic gets approved and becomes a success story then in the long run the dilution will not mean that much but if the opposite happens then a case can be made that the company was prudent to raise more money to be able to continue and a financially sound entity. So let's not get too excited, when we buy shares of a publicly traded company we are in fact giving our money to the management and hope that they will grow it for us by making the right decisions, sometimes they do and sometimes they don't we don't have much control over them. (IMHO, long RMTI, do your own DD).
Relax, the market price is telling us where the offering price will be, most likely under 10, my guess is around 9.50. It is what it is, in the long run fundamentals usually win. (IMHO, long RMTI, do your own DD).
The market (stocks) often do whatever it is to frustrate the highest number of investors. The reality is that most/all of us make our investment decisions based on the information that is available publicly but there is also the big money, the informed money that we can not compete with. Our only chance is if we get the fundamentals correctly, we are patient and things go as we hoped they would.
No one knows for sure but if you want to go with probabilities chances pf approval are higher than not getting approved. An 8 to 3 vote is favorable , better than 6 to 5, etc. Historically 80% plus of the times in such situation the drug got approved. Time will tell.
You m#$%$de good points, it's unfortun#$%$te th#$%$t your post h#$%$d #$%$ inste#$%$d of the letter #$%$ , did you do th#$%$t on purpose? I #$%$ssume not.
My guess is 10 + or - 50 cents, so 9.50-10.50 would be the range, the big boys like to leave more upside potential. Time will tell.