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sheldond
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I have a private small company with a few different revenue streams. I survive off of one particular stream and invest the other smaller streams into the market. I consider myself a longterm value investor and am not risk averse. I have three seperate portfolios each holding one third of my... More
  • IBIO After Dilution A Trade With Big Upside! 6 comments
    Apr 26, 2013 10:49 AM | about stocks: IBIO, MNKD

    I know a lot of people out there hate dilution when they are a stockholder. It feels like the company just gave away your money. I know it makes people mad and it also scares away investors because maybe it shows that the leadership is not using funds properly. I get it if your mad.

    I however often look at these opportunities as one way for the little guy to have a good entry position into a stock. This was the same process that led me to buy MNKD under two dollars. That being said the company must demonstrate an ability to use acquired funds to manage operations for the next year. The company should also have some positive future income generators. In IBIO's case they have a promising and growing line of vaccines that should be a necessity for millions if not billions of future humans. I wont bother to go into details because it is impossible to quantify and has a large range. I am confident in knowing that the earnings can be amazing even if the company has difficulty marketing its products at first.

    IBIO is not all roses and therefore required a capital raise. It also has a 5/28/13 lock up expiration which might cause a sell off but I believe management will wait for higher prices as the company will have a lot of interest once it starts bringing products to market. I think they have enough cash for the next six months to a year. Once interest comes back this could double. I would most likely take some profits at a 50% gain.

    LONG IBIO

    Disclosure: I am long MNKD, IBIO.

    Additional disclosure: I am not a professional stock advisor. Please do your own due diligence before buying any securities as they carry inherent risks and may lose or gain value. I am not affiliated with any companies mentioned and these are my own opinions.

    Themes: Biotech, Dilution Stocks: IBIO, MNKD
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Comments (6)
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  • Nice - and fair - article sheldond, I agree this is an intriguing play, big upside potential playing on a long term trend that should only get better.
    26 Apr 2013, 11:07 AM Reply Like
  • Author’s reply » Thanks! Joe I appreciate the comments. It leaves room for some DD....I will be working on a more quant oriented article...and just wanted to put it out there before it runs.

     

    Best,

     

    DCSIII
    26 Apr 2013, 11:13 AM Reply Like
  • Author’s reply » I believe now is the time. Well worth the wait.
    11 Jun 2013, 05:28 PM Reply Like
  • Author’s reply » July sounds good for IBIO finally holding its gain from .39 ......now at above .52 and already has spiked to .60 once..... Nothing phenomenal just a good solid gain....
    11 Jul 2013, 06:04 PM Reply Like
  • What's your thinking on IBIO now, sheldond? To somebody who's aware of the stock for the first time?
    30 Aug 2013, 01:21 PM Reply Like
  • Love the article Sheldond i agree completely
    Best, HWR
    12 Dec 2013, 10:25 PM Reply Like
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