What do looking at what options are, have to do with where the stock price is going ?
If options were a solid gold indicator of future stock prices, none of us would have ever had to punch a clock.
All we'd have to do is look to the options traders .
Under the Distribution Agreement, Baxter will purchase products from the Company at pre-determined gross margin-based prices per unit, adjusted each year during the term and subject to an annual true up. Rockwell will continue to manage customer service, transportation and certain other functions for its current customers through at least December 31, 2017, for which Baxter will pay the Company an amount equal to the Company's related costs plus a slight mark-up. The Distribution Agreement requires Baxter to meet minimum annual purchase requirements (subject to a cure period and certain other relief) in order to maintain its exclusive distribution rights. The minimum purchase levels increase each year over the term of the Distribution Agreement. Purchases that exceed the minimum requirement in a given year may be carried forward and applied to future years' requirements.
We expect the distribution relationship with Baxter under the Distribution Agreement to have a positive impact on our operating profit. Our operating costs will decrease and operating income will improve. Initially, our current sales level will decrease, but going forward we expect our overall domestic and global concentrate sales to increase as a result of the expanded marketing reach by Baxter, coupled with the anticipated expansion of our manufacturing operations in the Western United States.
"Baxter will pay the Company an amount equal to the Company's related costs plus a slight mark-up."
For all here speculating on sales figures etc., do yourself a favor and peruse through the recent SEC filings, and you will see that the company is actually expecting a decrease initially in sales, it does not explain why, but that is what they are saying.
So to me it looks like the stock is taking a wait and see attitude on a few things.
justawelder The FDA "panel" is not the FDA itself, the panel is just a group of doctors/physicians selected by the actual FDA to review the drug in question and give their opinion.
The actual FDA does not have sufficient personnel to review every drug coming up for approval all by themselves, so they select others in that particular field to look the situation over and point out the positives, or negatives.
For my money I would really like to know what the 3 against approval did not like.
I previously had another situation similar to this where the AdCom vote was 15-1, and the 1 turned out to be the loudest and most persistent against approval, and he turned out to be convincing to the FDA.
You are correct, many people forget, or are not aware of tax-loss selling season.
If someone has taken profits on this, or any other stock during 2014 they will have to pay capital gains on those profits, so to offset those profits they sell their losers before year-end to avoid the capital gains tax.
I'm not trying to insult anybody's intelligence here, I have just noticed on many other boards that year-end tax-loss selling is not a subject many are aware of.
Stocks that are already down for the year get added pressure this time of year because of tax-loss selling.
renalman : In my opinion you're about one of the best informed posters on this board, but I have to say you clearly didn't think this comment out......." As I said earlier maybe Rockwell will purchase some of its own shares with a portion of those millions that are sitting just sitting there."
Think about it.......They are going to issue shares, to get money to buyback shares ?
Funny how I got all thumbs down on my other post also of...."Apparently Most Of You People Have Not Experienced A Secondary stock offering before."
But was I wrong ?
Basically I just try and rely on plain old common sense, it usually is the best tool we have most of the time.
One thing I never do is put much stock in what option traders are doing, they to me are just people that for the most part don't have the capital to buy the actual stock.
Most are rooky gamblers. I know I'm stepping on toes here with my opinion, but personally I have never seen a successful option trader.
If you watch those "professional" option monster brothers on CNBC, they are 50/50 at best with their calls.
Only problem is, at the rate it is now going it will only be $4 by then.
"No one forced the management to sell stocks, they could have waited if they wanted to."
I think the majority here totally agree on that.
Management does not decide the price............they just decide to make the offering.
Without the offering there would be no debate concerning the price.
And like you say, they could have waited.......if they wanted to.
With all the Baxter backing, there is/was no urgent need for any offering.
I bet Baxter would have liked to get $15 Million worth of stock at $9.
justawelder: john Is giving the 101's a bad name, I can see he is no kin to you. Personally I think he was lost, and didn't really intend to be posting here.
He's probably over at Barnes and Nobles right now looking for a Dummies R US book on where, and where not to be posting on Yahoo.
Can you be a touch more descriptive than "voodoo medicine" ? Or just remain looking like an idiot and leave it at "voodoo medicine" ?
And just for your information, nobody here believes your B.S. that you shorted @ 12 & some change.
Your name followed by "101" indicates you're still a novice at lying on these message boards, you'll have to refine it a little to get even a scintilla of credibility.
Is that the same as bury your head in the sandland ?
So I guess your off to the pie in the sky land.
Who wants to pay more than the secondary issue price ?
Maybe in January if things go right. But now I'd be willing to bet it's a waiting game.
Let's hope the market doesn't fall apart beforehand.
Secondary stock offering before. In most cases when the offering price is announced, the majority of people do not want to pay more for the stock than what the offering price is.
The thinking is, why should I pay more for the stock than what they are selling a ton of it to someone else for ?
This is not uncommon at all. Very rarely does the stock appreciate much above the offering price, not that it never will, but the immediate thinking to shareholders is that they've been jilted.
sahmdars You misunderstood my post, I was addressing your comment that in a couple of months the stock could be 14 or 20. What I'm saying that management absolutely knows there is no guarantee of an FDA approval, and they are taking a policy out on that for themselves by raising capital right now, to guarantee their future paychecks.
And even if there is an FDA approval, that in itself is by no means a guarantee of sales.
For example, look at AFFY, got an FDA approval, was $26 1/2 , now......less than one dollar. In the same category of business as RMTI, for CKD.
After almost 100,000 applications of their drug, 2 patients died, now they are history.
And there was a lot of speculation that these two patients were so sick that they more than likely died regardless of AFFY's drug, didn't matter, the drug was pulled.
And they had the backing/partnership of a large Japanese company.
Another example of a company with a new FDA approved drug, EPIX.
Even if it comes, FDA approval is no guarantee for anything.
Some here may be aware of AFFY, I am well aware of what happened to the stock price in one day. Today unchanged at 9 cents.