/biz/ - Business & Finance

>>13345186
GALT will return several times over what the stock price currently is but that could be a while. Here are the problems currently:
>RO is issued to raise money for P3. This isn't that appealing to attract newcomers, its asking for old timers to pay more to finance the future. Thats fine
>But with healthcare as a whole taking it up the ass, newcomers are even less likely to invest even if they like the stock.
>And even those in the stock might want to just sell out and wait, re-enter after the RO.
>If the RO raises very little then its more likely to see a more dilutive raising in the future if they still choose to go the whole way alone
>Negotiation positions are a lot more precarious. A solid RO at the max is better to maximize a buyout then one that hits the minimum. Financial dependence is not good.

Anyone who knows the stock/drug knows its solid and greatly undervalued. But big money doesn't know that and probably few know it even exists. If they did, they'd be in it and the price would reflect what it is. If they weren't seeing it before, what would bring them to it now when there is so much more volatility and risk?

Dick U in his letter said he believes in capitalist principles. Meanwhile, a socialist tanks his ability to raise money for a new promising drug. If I were DU I'd use this opportunity to buyout an enormous amount of the float. He could stop the blood loss, profit immensely in the future, and then donate to campaigns to destroy the guy that fucked the sector.

The more I read the GALT offering the more I think its a negotiation bluff. The fact that they don't have a date set for it is interesting.

It seems like a strong arm move to get a bid a little higher.

Hope I don't get justed but I'm gonna stay on for now. Might raise cash to take my offering too.