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Biotech / Medical : Immunomedics (IMMU) - moderated
IMMU 18.06-1.2%3:59 PM EST

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To: Karuna1 who wrote (53374)12/7/2019 9:30:54 AM
From: erickerickson  Read Replies (2) of 53766
 
"...then the volume dry up, it will slide down below the offer price at least for..."

Yeah, but it's different now, this time I'm sure of it ;).

Still, I'll take a temporary pop then a dip over a sharp drop that stays down. Which I've also seen in the past. With this stock.

Kidding aside, what could make it different this time is if there really is an institutional demand that wasn't satisfied by this offering. If Captain B. has convinced fund managers that this is "The best last chance to buy at these low, low prices!" then this could well be the exception to your observation.

That said, I haven't a clue, just hope. We'll know more in January as you say...

As for the timing I have several theories:

1. we know we'll need more cash before we're profitable, let's do it now on the heels of the good news we'd re-filed when we know we can get $17.50. A bird in the hand...

2. there'll be an announcement Real Soon Now that requires a major outlay of cash.

3. we tend to think that they could do this quickly at any time, so one argument is "they should have let the price run up over the next few months and done it then". That has two assumptions, (a) that the price will run up and (b) institutions would be willing to step up to the plate whenever IMMU decided to make the offer. (a) is uncertain at best and (b) I haven't a clue. So my third theory is that the institutions put conditions on buying, anything from "within 10 days of resubmission" to "before the end of the year" to "only if it's under $20" to ???

4. IMMU isn't confident the market will stay at these levels and decided the risk of a market meltdown torpedoing the PPS was too great.

5. they expect more delays. I don't believe this for a second mind you and it would be hugely disappointing.

6. they need enough money to advance other parts of the pipeline before selling the company for a bazillion dollars in, say, the next year.

7. about 50 other possibilities.

Unless we take Dr. Aghazadeh out and pour enough wine down his throat to that his professionalism slips, we won't know all the factors that went into the timing. It really comes down to trust. "You should raise money when you can, and not when you need to" etc.

Enough musing for a Saturday morning, I have some things I need to get done around the house.
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