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  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    I have no doubt that the deals are real. I do, however, have significant doubt that UNIS will stick to deadlines (which they've missed with startling regularity thusfar) and therefore fail to reach milestones when they claim/predict they will.
    Jun 1, 2014. 02:47 PM | 2 Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    Only reasons I can find for the one (that's 1, uno) hedge fund that's a large owner of the stock to be so is because 1. the warrants they've got from equity issuance and 2. it's a tiny stock so buying shares+warrants is akin to them buying a long-term call option on the company with the price being the premium. I'd imagine this is cheaper and far easier than doing a total return or other swap with a prime broker, if they could even do one for such a small/illiquid stock.
    May 31, 2014. 03:08 PM | Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    Indeed. They couldn't even do a convert with a relatively high coupon; do not pass go, do not collect $200, straight to onerous, senior secured (by everything) uber-high coupon debt.

    The signaling effect of that alone should come close to offsetting the fact that the company found some $ to keep puttering on for another few quarters...
    May 31, 2014. 03:04 PM | 1 Like Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    First of all, UNIS products have yet to be used as the primary supply for any end-product. Check out lovenox.com; the syringe pictured in the instructions and accompanying text very clearly show and say the syringe used is not retractable. The Sanofi deal with UNIS is, by scale and all other information publicly available, a test run/back-up suppy, rather than a firm commitment for UNIS to become the primary syringe supplier.
    May 31, 2014. 03:01 PM | Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    You clearly didn't read the disclosure or any of my previous articles. Not only do I have no position in the stock, but since the co moved, they've delayed, delayed, and delayed, all while promising great things. Fool me once, shame on you; fool me the better part of a dozen times, shame on me.
    May 30, 2014. 11:14 AM | 2 Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    UNIS has not been so good at hitting targets, particularly manufacturing/shipping ones. I would not bet that they do a 180 any time soon.
    May 28, 2014. 10:12 PM | 1 Like Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    Excellent comment, thank you! I strongly suspect that UNIS will end up in default rather quickly and OrbiMed will, as you say, turn the screws rather quickly. My thought is that UNIS' IP is more valuable to another party, say, Becton, for example, than it is to UNIS. OrbiMed should be able to recover the principal rather easily by disposing of PP&E (discounted, of course) and the IP to a number of likely willing buyers for a handsome profit on their investment. Not saying that'll happen, not saying if it does, when, just saying I think Orbimed's plan B (or possibly plan A?) is to collect 10.25% plus royalties for as long as they can, and upon default - if/when it happens - flip the IP or license it to a big device company.
    May 28, 2014. 10:11 PM | 3 Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    We did some consulting/research work for a client on this name, however, that engagement is over. As the disclosure says, this is purely our own work.

    I'm curious how on god's green earth you think keeping information from investors provides good protection to long-term investors? That is absolutely backwards, at best.
    May 28, 2014. 09:19 AM | 4 Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    =max(dcf value, 0)? In all seriousness some very small changes in assumptions/inputs easily gives you a negative value, which impossible practically speaking, seems to be completely ignored by those claiming to be long-term holders...
    May 27, 2014. 01:45 PM | 1 Like Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    We shall see...
    May 27, 2014. 01:43 PM | Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    I am not aware of a study that looks specifically at lack of disclosure as a leading indicator or predictor of technical default or any other outcome, however, as I said, firms that have nothing to hide, hide nothing. ZAGG itself was/is questionable but even they provided all of that extremely relevant information. UNIS has gone out of its way to hide similar information. Why give investors and other stakeholders any more reason for pause, especially when there are already so many other reasons?
    May 27, 2014. 01:38 PM | 2 Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    This research was done purely on our own and has absolutely nothing to do with any client.
    May 27, 2014. 01:36 PM | Likes Like |Link to Comment
  • Unilife Investors Kept In The Dark (With Help From The SEC) [View article]
    Stone Street Advisors LLC is a research company, not an asset management one. In order to maintain unbiased perspective, the firm nor its members are allowed to initiate/hold positions in individual names, especially ones on which we share research.

    Perhaps one day down the road we will do both, but as things stand and have since inception, we only do research & consulting.
    May 27, 2014. 01:35 PM | 3 Likes Like |Link to Comment
  • Initial Thoughts On Unilife's New Debt Financing [View article]
    The math works as I wrote but there is zero chance they do anywhere close to $200mm in revs anytime soon, which is why I expect the royalty payments to be far closer to 2.75% for the foreseeable future.
    Apr 30, 2014. 11:13 AM | Likes Like |Link to Comment
  • Is Zagg's Shield Invisible? [View article]
    I've had it for about 5 days and so far no real complaints other than the normal getting used to a new phone/updated OS/HTC & VZW software intricacies. Great screen, battery life is great (for now), typing is good and dictionary much better than previous phones so I'm actually using the autocomplete sometimes. Gets much better reception on WiFi an 3/4g than my samsung galaxy which this replaced as well. Feels great in your hand with the metal back and despite being longer, still fits in my pockets & w/curved back slides in/out pretty easy.

    More to topic, OtterBox is dominating the case market if what I see on the shelves is any indication. The only ZAGG products at the VZW store last week were the keyboard case, pretty sure I didn't see any InvisibleSHIELDs, no cases and absolutely zero iFrogz, the latter of which I have never actually seen in the wild so I expect the intangibles will be amortized down to zero sooner rather than later.

    On Amazon, Zagg isn't in the top 100 for cases and the 1st zagg product in screen protectors is only #86 in that category, so there's zero brand equity/loyalty, making the shields, as I've been saying for years, just another commodity. Zagg's COGS is way, way too high for what they sell, as is their SG&A. I'd venture to guess many other competitors, especially in the screen protector and case game, have better gross margins and lower operating expenses.
    Apr 1, 2014. 10:05 AM | 1 Like Like |Link to Comment
COMMENTS STATS
198 Comments
139 Likes