Resistance is a buck 42 and my target for 2015 is 4 dollar area. After the worst financial blunder I've ever witnessed , you must not drive looking in the rear-view mirror. Why are things different now? Japan , BARDA and the loansharks........Had I been in a position to short CYTX after breaking the low ( buck 42 ) , I would have brought them to their knees just like you saw happen. A NASDAQ mkt/mkr can short the shares without impunity because the law of the jungle is the only law that matters. Forget the rules , forget the "shares available to short" , that's all bullshit....... The "loansharks" saw a company that is underfollowed with no pilot to steer the ship......Had Hedrick consulted yours truly , I would have advised to aggressively hit the ATM ......the result would have been twice as good as what they got. But he is a sheep in the stock market......a mindless , carefree glob of wool and mutton for the taking. Look at the two weeks + that passed by after Saad was canned - - - Where was the stock ? Had they had enough gumption to start hitting the bid , the results would have been better than selling 26mm shares at fiddy cents ..........and another 26mm shares for fiddy-seven( via WTS)........No let's listen to classical music and play golf as the ship is perilously headed for the reef ......Whoops , we ran aground ! ......" NOW I'LL ACT" , says Hedrick/Tiago ,( lol ) ........ I'll sell shares for NOTHING and give them a warrant for the same amount ....... wowee.... I'm underwhelmed.......Did these people actually attain degrees ? Hedrick - MD? Tiago - Accounting ?..............University of Phoenix? ....Even as cynical as I am ( and I'm cynical ) , never did I dream anybody could be as dumb ( financially ) as cytx mgmt/BOD....... These people have not the first clue about the market ..........Enter the loan sharks - Short the stock down to fiddy cents , then SAVE the company. You cant make this shit up...... but all is not lost , after all , ADRC's are valid,etc...... Now the loan sharks are in charge , not Hedrick .....Buy all you can now , it'll be smooth sailing for cytori. The next 13MM dollars are already raised via the warrants....... the wolves will protect the sheep at this point as they ponied up 13MM USD knowing that we will need another 13MM usd in 6 months. Japan , BARDA and the loansharks ........no more risk here imo......Valuation will return to 2x invested capital .....Like I said , 4 bucks area - -- - forgot................I'll add 2 footnotes in defense of all the longs : we all thought nobody could be this incompetent.................but they were. Hedrick needs to wear the lab coat and Tiago count the beans , but the activist investors are in charge of this company and that'll escort cytx to the promised land of 10XWD.
The following user(s) said Thank You: mtpinman, rongside, d9dozrman, fatboy, b767cpt
I got out of CYTX ( and posted it on YMB for everyone to see ) just below 6 USD years ago ..............Started buying well below 2 bucks and going crazy buying where we are now. Small move up and I'm even.....I'm glad to go against he grain. Like i said.......... 4 bucks ...... forgot
Having been mesmerized by the potential of ADRC we longs drank the KOOLAID. You are right in saying that "we all thought nobody could be this incompetent". The financial acumen of CYTX management is non existent, or they are in collusion to sell out the company from under the old shareholders who appeared to be hard core faithful (stupid).
You are right to buy at these levels ........ but only if you feel that the management is NOT hellbent on destroying the older shareholders. Unfortunately we do not know if the new shareholders are activist investors with a view to maximise their return by supporting the company.
Given that most of the "institutional" investors provided by these investment banks in the past were nothing more than sharetrading arbitrageurs who play/manipulate the share price in both directions there can be no assurance that they will take up the mantle of shareholder advocates.
Their machinations with the shareprice, that came from prior knowledge of the company's financial position and ineptitude, have given them an effective entry price WELL BELOW the announced 52 cents per share level . The question is how much is enough for them? There is nothing to stop them from driving the shareprice even lower in the future if they are abetted by management.
The new shareholders have dictated provisions that ensure that they have access to the same financing terms that may be offered to other new investors for a period of 18 months. "Pursuant to the terms of the Purchase Agreement, until the 18 month anniversary of the date of the Stockholder Approval, upon any financing by the Company of Common Stock or securities convertible into Common Stock, each investor will have the right to participate in such financing up to an amount of such financing aggregating up to 50% of the financing for all investors, subject to certain exceptions".
Think about this ........ Poison pill provisions are usuallly put in place to protect shareholders from predatory outside investors ........... unfortunately there does not appear to be any such protection from internal predators. Theoretically the BoD plays this role.
The Board of Directors have a moral obligation to not allow any further criminal dilution to take place. They have failed in their Fiduciary duties to date. The only possible fair alternative for the EXISTING OWNERS of the company WAS the opportunity to participate in the new funding on the same terms as those provided to the loanshark/shylock/activist investors of Roth and Maxim. Investment banks in the past used to underwrite capital issuance ............ obviously this is not profitable enough for them. I am intrigued to hear from the BoD how it is possible (legal) to provide preferential assurances to one group of shareholders at the expense of another? Why are the new shareholders assured access to any new shares issues, but the old ones are/were not ??????
There is some breathing room available. I want the debt paid off ASAP. CYTX must not be allowed to lose its IP for a pittance, NOR CAN THE THREAT OF SUCH LOSS be used as justification for future predatory dilutions. Management MUST seriously look at partnership agreements with major BP/Device companies ASAP.
This turn of events is a strong endorsement for passive index investing. John Bogle and Eugene Fama have provided an alternative that I really should have listened to. However, I am an investor in CYTX and have had enough of this. I am not willing to allow others to talk to the management /BoD on my behalf any more. I will be writing to them myself.
The following user(s) said Thank You: d9dozrman, fatboy
You are assuming there is value in the IP of Cytori. Management, and more importantly, the scientific community, and BP have not demonstrated that to me. Either I have been jaded by the performance of Cytori or I am finally looking at the situation with the clarity of experience. I can't see how Hedrick would have made the deal with the devil if there were value in the IP. The efficiency of the market would have not let what has happened happen. It is hard to admit failure and I still have a glimmer of hope. Hope is a bad investment.
Hope is a bad investment and with Hedrik running the show there is no hope for the old investors. Clearly he feels no obligation to older shareholders who have been loyal and bilked out of millions. He feels he owes us no explanation as to the current situation and that we are better off as always being left in the dark. His new master are the loan sharks, who he gave our company away to, and with that died any hope. It is amazing with all that has transpired, not a word from the man who promised to focus on communication.
When investing in a particular stock one does the requisite due diligence, makes some assumptions and places his money to the extent that it seems warranted at the time. Hindsight is not due diligence, nor is crying over spilt milk.
More knowledgable investors than I have invested in CYTX on the basis of their IP and research results :
NIH (LVAD trial)
Lim (Lorem Vascular)
Countless translational trials funded by foreign health care systems and universities
The question is not whether there is value in the IP. It is why we entrusted the development of the technology and the company in the hands of shysters.
Good memory on the list of failed relationships and minimal supporters
Lets examine them and what Cytori's IP brought.
Green Hospitals...I remember them mostly for all the Cytori Banks they were going to install in Japan. CC outing how many hospitals were in the "Funnel" and how many ore would join them. Yeah. That went well and GH paid up for near worthless shares twice. Failed sales and a failed investment. I am sure GH is pleased.
Olympus: Fas' favorite for fistula. Lets keep this one short. A over engineered CelutionOne that few wanted to pay for. Also a stake holder at much higher prices. Dissolved our partnership and got their holding undeer 5% so no more reporting. Somw say they hold...I say they sold...at least some.
Astellas: I worthless scrap of paper for their letter of intent. Testing but never willing to sign. Another holder of Cytori stock that I am sure wishes never heard of them. Remember...even post the 2 yr period Cytori management claimed their excellent releationship...is that like the one woth Oxforf et al ?
BARDA: So far a real snoozer that has done absolutely nothing for the PPS. They hope is for a government order for a 1 time new version celution placement. Burns and wounds...should they be approved will be small markets.
NIH (LVAD trial): This is what changed my line of thinking of what Cytori would become long term....a nitch player...should they survive. ATHENA should have showed and maybe even killed the LVAD market. Now some hold it up as a saviour..LOL. Sad indeed.
Lorem Vascular (Mr Lim) One huge question mark ? He did invest a tidy some but quickly had to renegotiate his deal !!! WHY ?????? Something was very wrong and he held off payments for a bit til resolved. Also a big forgotmorthanuno touter as going to save Cytori from the wolves....he didnt care. I expect progress but a slow patient ramp....which in itself may be years away as they too will do testing.
Okyanos: CC himself might as well ran this. Mega delays as the Bahamas took their own sweet time and operations were put in place. I still say it will be a place of a slow ramp but I guess we will see. Still waiting for patient # 1.
Translational trials: There is always money for these and the fact that they were funded showed there was hope but many companies have hope and get funded trials. The problem with these was follow-up. The was none reported. Most never went past the first phase handful and Japan for SUI and France for sclearoderma have been dragging their feet. This pathway was one of the biggest mistakes that management took...expecting to sit back and collct big salaries thing the world was going to scramble to make them rich. This time cost the company million upon millions.
Not mentioned in rongsides list is the FDA who relished delaying the IP.
OK..who paid ip for shares today at $ 0.51 ???? LOL Forgot says $ 4.00 in 2015 you know. JK says $ 5.00. I say as I have for so so long...its the cash that matters followed by reimbursement. Cytori still is lacking in both. Sub $ 3.00 for 2015 seems like a easy call to me.
Instead of BS 2015 numbers we need to show that a reverse split can be avoided in 2015 !!!
I agree except that the events have not shown any value in the IP. Research results may show that stem cell therapy is effective in certain indications but what their connection or dependence on Cytori IP has not been shown. I am not crying. I can take the fact that I may have been duped by my zeal to see people helped by regenerative medicine. Mislead by a cadre of scoundrels hell bent on enriching their own coffers. I am just saying "show me the money!!!"
I don't think there is anything there except the experience Cytori has in the stem cell space. And that experience has as its result a broken company on the brink of insolvency.