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  • Initial Thoughts On Unilife's New Debt Financing [View article]
    How many more years are you going to believe Shortall's promises and the timing thereof? 10yrs and they're still nowhere close to profitable...

    I obviously am not going to convince you about anything as your mind is already made up so no point in responding further. I wish you luck and hope if you're so convinced UNIS is a winner, you keep your sell stops/limits tight.
    Mar 19 11:04 PM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    Yes, which further advances my point. I literally have never seen that before in a filing or press release.
    Mar 19 12:25 PM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    1. Re-read what I wrote. Pro Forma they'll be in the 96th percentile. Not pre-financing.

    2. The new debt decreases the value of the equity substantially, increases the firm's weighted average cost of capital (if you use CAPM at least), etc, etc. $60mm is entirely too much debt, as is $40mm + the royalties. Unless UNIS gets one or more very large contracts with upfront payments in the next 12-18 months I wouldn't be surprised if they end up having to raise even more money, at best. Frankly, a convert would have been far better for them, however, in doing straight term loan + royalty, I doubt anyone would do a convert deal with them. Whether this is different than any other small cap firms is irrelevant; UNIS has been around for a long time and has yet to achieve anything even remotely approaching commercial success. How much longer are investors going to pay such a huge premium for that?
    Mar 19 11:45 AM | 1 Like Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    The fact is that well-run companies have succession plans for C-level executives and those executives communicate with the rest of management and the board when they are considering leaving the company to ensure a smooth transition. They also provide an explanation of some sort when an executive departs e.g. "...is leaving to spend more time with his family," which UNIS did not provide at all.

    Ceteris Paribus, this is very uncommon and does in no way, shape or form indicate anything positive about how UNIS is run.
    Mar 19 11:38 AM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    2.75% on 1st 50mm, 1% on 2nd 50mm, 0.25% on anything over 100mm = 2.75+1+0.25 if they do over 100mm in revenue = 4% blended rate. This is no rocket science nor am I trying to distort anything. Shortall has done a good enough job of doing that on his own. You can believe the guy who's made millions while diluting shareholders 10x over the past several years, or you can consider the possibility that this company is run like crap, has largely failed to reach milestones and promised goals, and screwed shareholders all along the way. Your call.
    Mar 19 11:35 AM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    No. I was not paid to write this. We are paid as a consultant to conduct research for clients. When we are able to publish some of our research, we like to do so as long as we have our clients' permission.

    You can keep assuming that our goal is to push the price of the stock down, OR you can read, consider, and respond to the research we share. The former is a cop-out and intellectually lazy. Any reasonable investor must consider all possibilities, positive and negative, which we have.
    Mar 19 11:32 AM | 2 Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    The reason I say that is because I like to consider all possibilities; while I'm confident this company is massively overvalued, there is always a chance that they pull off a miracle and it ends up being a great, sustainable company, however infinitely small that possibility is, it's non-zero.
    Mar 19 11:29 AM | 1 Like Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    I'm just pulling out what the 8-k said, perhaps I'm interpreting it wrong but it seems to clearly say it's tiered and additive. Maybe I'm wrong, but that's how I read it.
    Mar 18 10:32 AM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    Ok pal. Instead of responding to any of the points I've made, just keep singing your old song and making it personal, with zero basis to do so.
    Mar 18 09:40 AM | 3 Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    Fair comment. We look at this long term 12-24 months. While not impossible, I'd be surprised if UNIS gets to $100mm in sales over that time period, frankly I'd be surprised if they get close to half that. We shall see.
    Mar 18 09:39 AM | 1 Like Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    Read the disclosure, neither I nor anyone associated with my company has any position in the stock or derivatives, long or short.
    Mar 18 09:37 AM | Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    Orbimed is a very large, very savvy investor, and if I'm correct about security and seniority, this deal has little downside for them, even if UNIS defaults.
    Mar 18 09:35 AM | 2 Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    1. See full disclosure, neither I nor any members of Stone Street Advisors LLC have or plan to initiate a position in UNIS.

    2. Yes, read the 8-k. I spelled it out here but if you don't trust me, read it for yourself on EDGAR. 2.75% on first $50mm, 1% on next $50mm, 0.25% on >$100mm = max 4% royalties.

    3. No interest in talking to Shortall, I can read enough of his promotional BS, I don't need to hear it over the phone, too.
    Mar 18 09:34 AM | 3 Likes Like |Link to Comment
  • Zagg Inc.: A Growth Stock For Value Investors? [View article]
    You seem earnest and not misguided so I'm trying to be kind. I just can't stress enough how much of a dog this company truly is. There's a reason iFrogz folks dumped every single share they could the day the 1st lockup ended...
    Feb 20 10:31 AM | Likes Like |Link to Comment
  • Zagg Inc.: A Growth Stock For Value Investors? [View article]
    Apologies for the tone, but seriously, I've done a serious deep dive in this co - as have a few others - and it is absolute trash. Just a sample of a few posts to catch you up: http://bit.ly/1dRGCNP
    Feb 20 10:15 AM | Likes Like |Link to Comment
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169 Comments
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