Some thoughts about current situation...

Discussion in 'Dendreon' started by Anonymous, Sep 1, 2012 at 11:24 AM.

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  1. Anonymous

    Anonymous Guest

    Exactly right. Read any federal securities law enforcement actions both from cases where people went to prison and cases where people paid substantial fines and they have the terms "known or should have known".

    Ignorance, lack of seasoning, faked ignorance, fake lack of seasoning is all covered under "should have known". Ignorance to the law is NEVER an excuse in ANY crime.
     

  2. Anonymous

    Anonymous Guest

    Actually the phrase is "knew or should have known" but the point of your post is 100% right.

    In this case, MG "knew or should have known" that a complex first of its kind product that was a paradigm shift and costs 93K over 6 weeks and has to go through insurance before providers could be reimbursed was NOT going to sell itself. The forecasters that he ignored knew these things.

    MG knew, BUT under the law even ignorance, stupidity, lack of seasoning is covered under "should have known".

    Stick a fork in MG. He's cooked!
     
  3. Anonymous

    Anonymous Guest

    Bingo!!!
     
  4. Anonymous

    Anonymous Guest

    Bingo!!!
     
  5. Anonymous

    Anonymous Guest

    With the burn rate of $80-90M/qtr, lackluster sales and the cost of restructuring, it looks like the cash balance will soon fall below what is needed for a year.

    I see one of Seeking Alpha's writers also thinks this makes the need to raise money immediate.

    How will JP Morgan and the other houses that sold the last round respond to this? Will it mean that we will have to dilute at $2/share? I doubt we could get more with sales still declining.
     
  6. Anonymous

    Anonymous Guest

    Absolutley would mean dilution. No way JP Morgan allows another bond offering. By not allowing another bond offering they force either a dilution or a sale. The dilution doesnt hurt JPM. The convert option is worthless anyway. The sale makes the bondholders come out whole.

    Investors in this POS can expect a dilution, q1 or q2 2013.