1. You totally ignored my point that there hasn't been buying interest for a long time, well before a RS was looming.
2. Many companies give notice of their planned RS, well ahead of time so that stockholders can decide to sell beforehand. Vijay kept us guessing about the timing, and you guessed wrong:
"I know they will likely wait until late July for the reverse..."
3. "This, and low float, is why the stock will be rallying after the split..."
We'll see about that. A brief 10-30% spike after a 30-40% post RS fall isn't a rally for those who held through the RS.
Welcome to the 21st Century. What used to be the Pink Sheets is now OTC Markets Group, which has a 3 tier system of quotation markets based on the quality and quantity of information the companies provide. At any rate, when SGY is delisted, the price will be hit hard. Though OTC stocks trade mostly normally, brokers won't guarantee that orders get filled at the quotes. When my orders haven't filled, I've had to argue with them about what the quotes mean if they're not actually available. But typically, orders fill at the quotes, albeit sometimes slowly.
$1.1 million cash left as of 3/31, yet Teper took $714K in compensation last year to drive this company to 1/10 of its value a year ago. Sounds like it's time for another bonus, and a ton of free calls with a strike price of 20 cents. Gonna be a lot of dilution coming to keep him in his mansion.
Even worse. People stopped referring to Nasdaq as OTC in the 1980s. It's certainly a full-fledged exchange, and it's not where Stone is going when NYSE delists it.
It's because the company has hardly any money, loses money on its ostensible business, and only makes money in its real business: selling stock.
Outstanding common shares (in millions) as of March 31: 235.6
as of May 11 : 294.4
Currenttly authorized (soon to be increased): 450 million
Additionally, there are millions of preferred shares that are either convertible into common stock below market price, or that pay dividends in common stock.
If that weren't enough, there's a committed equity line (CEL) purchase agreement for another $29 million worth of common stock. The company is registering 48 million shares to sell more stock under this plan:
"As of January 27, 2016, the Company was not able to access the CEL because the Company does not have any registered shares available for use in connection with the CEL purchase agreement. The Company is in the process of registering an additional 48,000,000 shares for such purpose with the SEC. If such additional registration statement is declared effective by the SEC and such additional shares become available for use by the Company, the Company’s sales of shares pursuant to the CEL purchase agreement during 2016 would be limited to such 48,000,000 shares. The Company’s use of the CEL in 2016 and beyond would require, among other things, the Company to file additional registration statements in the future that cover additional shares and have such registration statements declared effective. The Company would also need to maintain the effectiveness of such additional registration statements."
So get ready for more pain.
Just giving dummies something to gnash their teeth about. Do you know that "unlimited" and "limited" are just regular words that don't need to be capitalized?
More free options for 212.5K shares @ $.356 strike. Job well done, Vijay!
Par for the course. Vijay did such a good job last year of halving the stock value, that the Board gave him a $300K bonus, on top of free stock and options, netting him over $1.4 million for the year. Of course, the directors aren't stingy with the other executives either, or themselves, because it's OPM (Other People's Money). By the end of 2017, if not before, the company will need more cash to pay themselves this exorbitant compensation. I think that the compensation model for such unprofitable (past, present, and foreseeable future) companies is absurd. If they believe in the future of the company, I believe that they should get reasonable compensation until the big payday when the company has a profitable product. These fat cats getting rich off investors in small R&D companies that will likely end up financially insolvent seems grossly unjust to me.
1. "The only thing holding the stock below cash is the fear of the split."
The stock has traded below cash well before the reverse split was an issue.
2. If the Board believes that the June 20 herpes vaccine data presentation will be a game-changer then it should wait to RS til necessary to avoid delisting. Does anyone expect the additional herpes trial data to move the stock over $1? Not me.
I was looking at this for a trade into June 20 and the CMV top line results expected in Q3, but the threat of a RS is too dangerous. RS done to avoid Nasdaq delisting usually hits the stock/market cap hard, though there are exceptions of course. We don't know when the Board will act. Also, despite their declarations that their executive compensation is standard, it seems to me that they're raping the company. The CEO took $1.4 million last year, and the compensation of the other executives and directors is draining cash from this small R&D company. If they didn't have help from Astellas, this exorbitant compensation would drain cash quickly. I don't know the terms of the Astellas compensation, such as how long Vical will keep getting as much as it does from it, and it's not worth my effort to study it, as I see enough negative here to keep me from buying. I welcome any logical, fact-based rebuttal to my argument.
I wonder what it'd be if Nadano didn't tout it. This stock and company are awful, esp. the CEO who misled about a significant partnership that was imminent late last year.
Liabilities vs. assets. Old equity will get nothing. Even the most generous oil bankruptcy bone to old equity is 4%, so 75 cents for this bankrupt company stock is absurd. So is the price for BTUUQ and RJETQ, but they'll eventually come back to the ground, too.
Stupid to the end.
Yes, of course you have to be holding when the bankruptcy case is closed to get the warrants. All of the company's common stock will be held at the end by someone or another; the shares don't just disappear due to illiquidity. But don't trust me, the company even gave a phone number to call with questions, so use that.
Why not wait to buy the new stock if you are so high on the company after emergence from bankruptcy? It seems a lot less risky than buying what are essentially way out-of-the-money LEAPS. Plus, it may be possible that they change the terms of the warrants before the case is closed. I'm unsure how secure the terms of a pre-pack bankruptcy are. Maybe a minority of creditors fight the terms in court. I don't know. I know that creditors don't like giving anything to old equity when they're not getting 100%.