Seeking Alpha

Northwest Biotherapeutics falls 9.3% AH on stock/warrant prospectus

  • After soaring 44.8% in the last 2 days, shares of Northwest Biotherapeutics (NWBO) pull back 9.3% AH upon the company's filing of a common share/warrant prospectus for an undisclosed number of shares. (prospectus)
From other sites
Comments (6)
  • enigma_mttrrnd
    , contributor
    Comments (30) | Send Message
     
    I am just starting to invest, so there are still some things I don't understand. What does warrant prospectus mean? and how will it effect NWBO in the long term?
    19 Nov 2013, 08:18 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4085) | Send Message
     
    Stay away from this one. One really needs to find the good biotech stocks out of a load of questionable ones.
    19 Nov 2013, 09:11 PM Reply Like
  • vireoman
    , contributor
    Comments (966) | Send Message
     
    At least one of the commenters in the most recent NWBO article predicted this share-offering, coinciding with the uptick in share-price. Stocks like this I can do without.
    19 Nov 2013, 09:49 PM Reply Like
  • King Rat
    , contributor
    Comments (715) | Send Message
     
    A warrant is a security that hopefully can be exchanged for stock some day in the future. A prospectus is an explanation for the rules of how that security will function. Most publicly traded securities must have a prospectus to be legally traded on an exchange.
    Having not read this prospectus I cannot tell you specifically, but generally what this means is dilution of the stock (more publicly traded shares available leading to diluted value for existing shares) which is why the stock is down.

     

    I can't count the times that pharmaceutical stocks have climbed on hopes of Stage 2 or Stage 3 success only to crumble to near nothing on failure. Please be careful.

     

    I have been studying the market since the mid-80s so here is my advice: only invest in a stock where you understand the business including revenue. Exploratory companies, be they for oil, metals, or medicine, are the most difficult to understand. I stay out of all of them. Biotech companies in particular are hard to understand. I would not even invest in the big name pharma stocks because even with them, whimsically changing patent laws and patent agreements can instantly erase or add billions in future expected revenue.
    20 Nov 2013, 12:32 AM Reply Like
  • Bio Bull
    , contributor
    Comments (238) | Send Message
     
    To be fair, a lot of biotechs would cash out with a share offering after increasing in price by 100%. The question is whether the science is there because, if so, the funds will go to pushing along their pipeline which will have massive market potential.
    19 Nov 2013, 11:12 PM Reply Like
  • King Rat
    , contributor
    Comments (715) | Send Message
     
    I don't invest on hope, but I do sincerely hope the answer is that the science IS there because the company's goals and values are very admirable and any drug that works safely is a victory for society.
    20 Nov 2013, 12:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector