and let's not forget hedrick's emphasis on "doing this right" (re. r/s) if it was something that had to be done. i believe he emphasized this two calls ago when, in his mind, a miracle "organic" rise to over a dollar was still possible. this man is a fool with no concept whatsoever of how wall street works.
the interesting thing about some shareholders of cytori is that they are quick to take an optimistic view of future possibilities under the premise that "they can't really be this stupid". unfortunately, it's looking more and more like they are this stupid (and greedy). if they don't have a slew of positive news coming to drowned the shorts, this will speak louder to their stupidity than the 10k they wasted on the appeal to remain on the nasdaq global market ... well ... just because they thought they should.
I have no idea where they came up with the pricing for the rights offering. and, on top of this all, they've alluded to the fact that they've hired wall street "consultants" to assist with share price matters.
Doing this r/s was suicide, just plain stupid, but as management is beholden to themselves and the loan sharks that have high jacked the company they could not resist one last fuck you to loyal shareholders. The shorts will rack up big dollars. Inexcusable bordering on criminal. Too late now, they have prolonged there salaries until the company dies.
Agreed, Angryharry - when it comes to pricing and all the rest, Tiago is like my brother, he probably sounds very confident when he says he knows what he's doing, and Marc doesn't care since he can redo anyway.
The price is falling because Marc's friends started selling the first second of open, yesterday and will continue to sell. They need lots of money and not many buyers left...
This last flush that just happened is where they keep squeezing on the bounce, but will break again... Of course, must bounce to lure in the little guy in as well.. Only traders and shorts will be making money here.
Oh, BTW.. all these "longs" that you see are now posting more often and longer posts... these are not as honest bunch of folks and they pretend to be... it's a dirty business and easiest way to make money. When they start typing and posting several in a row, then it's time to stop grazing and look around a little bit...
Took me a long time to realize that the little guy jumps in the pond, WAY WAYYYYY too early....
Roth - RS might be the new hi for Marc for a while.
Price target is still one red cent (pre R/S) and might be WAYYY to much...
I'm not new to the board (lurker), but had to register to say that I don't believe it's the R/S that is causing the recent tank in price, its the fact that they increased the authorized shares to a pre-rs 1.125 Billion shares!
This is madness, and the only reason I think they went through with the R/S was so they could attempt to hide the insane increase in AS from most investors that aren't looking closely.
I have followed many regenerative medicine companies for 8 years or so, and one of the reasons I initially invested in Cytori was because they avoided these crazy share increases (unlike say, ACTC or a myriad of other companies that diluted investors into irrelevance). Unfortunately, this behavior accelerated with some of the recent financing, but this one takes the cake, and forced me to abandon hope for any current share value persisting.
With the current financial health of the company, I fully expect them to try and raise again shortly, and IMO, they could easily use a large if not majority share of what was recently authorized to do so, effectively wiping out current share holders AGAIN. If this does happen, it's only a matter of time until they need to raise the AS again, possibly double what it is now at.
Welcome to the lodge. Sorry to say that you may have come in at the end of all of this. Your scenario is sound but I think that Hedrick et al have just about drained this swamp and we will see them move on to better pastures in the near future. Just as CC "retired" when things started to get hot, and Saad moved on to pursue fresh "opportunities". As soon as it is apparent that the big paydays are going to stop the rats will jump ship and there will be nothing but hope left. And hope does not sell well on Wall Street.