Yes, but European market is a peanut...The royalties will not make the company CF positive. They need their OWN product to get rolling rather than #$%$ around with a Phase 4.
Fezzi, I would Curb Your Enthusiasm, as you know that this will be minor $$ in royalties for Europe. It is part of the series of product support/extension actions that the platform will probably garner over the next 12-18 months but all of them in aggregate won't supply a royalty stream to even justify today's price on a PV basis. The key is if they could have their own proprietary drugs and generate large $$ revenues from those.
Here is the track record of this company (numbers rounded)
2008 Revenue $6mm Loss $10mm
2009 Revenue $16mm Loss $9mm
2010 Revenue $48mm Loss $7mm
2011 Revenue $104mm Loss $5mm
2012 Revenue $177 Loss $7mm
2012 Loss $7mm..Stock based compensation was $7.5mm, Top 5 Execs got $6mm
2013 Q1 Revenue $49mm Loss $3.7mm (versus $33MM revenue last year with $4mm loss)
Stock-based compensation in Q1 was $1.7mm
They also have unvested stock compensation of $6.7mm which will be expensed over weight average of 3.2 years IN ADDITION to any other stock-based compensations and outsized executive pay.
What you have here are pigs feeding at your trough!!
ALL OF THE ABOVE IS MY OPINION BASED ON HAVING SEEN THIS BEFORE IN 1999
WHERE EVERYONE CASHED IN AND GOT THE MINE AND THE SHAREHOLDERS GOT THE SHAFT.
This stock will be at $5.50 before it hits $8.50. Check out the pattern for the past 3 years. Lots of hype and great news and then.....ta...da....sagsville. As far as I am concerned this is a bullshiz company which will never earn enough to justify its current market cap. They MAY be able to use their platform to help some of their partners extend patent protection and improve patient experiences, but the royalty streams will not make anyone rich. As for their own products??? Pure and utter BS...Phase 4...gimmee a break. Cellulite...sure.
I agree with everything you have said, except not sure how one measures the number of shares which have already been covered??
Desperate...like Goldman Sachs didn't do due diligence and didn't check to see that they really had the money in the bank, or didn't know if there were any pending investigations through the disclosures required through the reps and warranties. Anyone who believes these rumors shouldn't be even involved in this stock in any way, shape or form because they don't understand finance and normal procedures. Short of a terror attack this deal is a mortal lock (not even a financing contingency) at $20/share PERIOD. Take it to the bank.
I think he was castrated BEFORE the settlement; what a sicko sad person.
I head a rumor that he was fired from Zix for exposing himself in the elevator??
Watch out below!!
There is no doubt that any biopharma is going to have a pipeline that can extend for years. The key is for them to become cash flow positive before they run out of cash and have to dilute existing shareholders to keep the doors open.
Not sure what the MBND piece of paper might be worth, but certainly not what people thought when the deal was originally announced!! At least I won't have to listen to Sheldon on his CCs anymore with his line of BS and the suck-up guy asking questions all the time.
Source was a filing this AM with the term sheet. (FWP) and they are goosing it to $750mm. I will try and reproduce below, but Yahoo usually does't allow long posts:
Frontier Communications Corporation
Pricing Term Sheet
Issuer: Frontier Communications Corporation
Securities: Senior Notes due 2024
Principal Amount: $750,000,000
Net Proceeds to Frontier (before expenses): $736,875,000
Maturity: April 15, 2024
Price: 100.00% of aggregate principal amount
Yield to maturity: 7.625%
Spread to Benchmark Treasury: 565 basis points
Benchmark Treasury: UST 7.50% due November 15, 2024
Benchmark Treasury Yield: 1.980%
Interest Payment Dates: April 15 and October 15, commencing October 15, 2013
Make-whole call: At any time at a discount rate of Adjusted Treasury Rate plus 50 basis points
Change of Control: 101% plus accrued and unpaid interest, if any
Trade Date: March 27, 2013
Settlement(1): T+9; April 10, 2013
CUSIP/ISIN: 35906A AN8 / US35906AAN81
Ratings(2): Ba2/BB- (existing)
Underwriting discount: 1.750%
Min. Allocation: $2,000
(1) We expect that delivery of the notes will be made against payment therefor on or about April 10, 2013, which is the ninth business day following the date hereof (such settlement cycle being referred to as T+9). Under Rule 15c6-1 of the Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly purchasers who wish to trade the notes on the date of pricing or the next succeeding five business days will be required, by virtue of the fact that the notes initially will settle in T+9, to specify an alternate settlement cycle at the time of any such trade to prevent failed settlement. Purchasers of the notes who wish to trade the notes on the date of pricing or the next succeeding five business days should c
They are paying 7.625 IF they get this off at 100%. Last time the effective rate was under 6.5%. Clearly not a good trend. They keep pushing out judgement day, slipping targets on reducing leverage and all of their guidances and projections exclude any longer-term solution to the pension deficit and assume they continue to receive their "dole" from the government (FCC)...wonder how the sequester will impact that??
Not sure if there is any economy to be created by merging this company with any other...I would assume they purchase at lowest prices already...not sure if they can consolidate overheads and any geographical overlaps for supervision...but looks to me like the salvation for the future would be to find someone with less leverage who can then increase FTR's cash flow through "synergies" and pull this out.
Everytime one turns around they are getting in deeper and deeper. They may push this out a few years, but if they don't get revenue up they have no slack if they get hit with a "problem"...so the dividend is not as secure as many think.
Since he owns a lot of stock at $1.75 also, he can afford to keep this propped up for the performance of his funds. I am sure they will pull some rabbits out of their hats come December, just like they did in December 2005 to keep the rubes coming into the tent ; )
Jeffries had a buy on this a long time ago with a price target of $13. If those analysts knew anything they wouldn't be analysts...they would be Randal Kirk.
More of the same BS they have been selling for years. Maybe we'll get to cash flow positive before we go bankrupt or have to dilute the shix out of your poor shareholders.
Are you really so desperate that you need to come to this board every 15 minutes to make often misleading pumping comments about this stock?? Your credibility is ZERO to anyone who has looked at this board and you offer nothing but often outdated posts and quotes trying to offset the fact that Halozyme is a very speculative company whose stock could be 12 or could be 2 depending on what the European Medical and FDA have to say in the next 6 months. In the presentation today they said they HOPE to be cash flow positive as EARLY as 2014. In other words, for the 3rd year in a row they have moved the bar down the road. The only difference this time is that they bet the company on it since they took out a loan secured by all of their IP which gives them just enough cash to make it to the end of 2014 and then they had better be generating some cash or the game is over and the creditor will own the company.