Seeking Alpha

Inovio Pharma launches secondary; off 8% AH

From other sites
Comments (35)
  • normandemma@hotmail.com
    , contributor
    Comments (13) | Send Message
     
    why????? It seem s the company is doing great. They have plenty of investment money.
    26 Feb 2014, 04:31 PM Reply Like
  • smallcap sleuth
    , contributor
    Comments (188) | Send Message
     
    They just raised the game from the limited scope of what you see to a future LARGER than you narrowly imagined. Unless you can buy all you want on the secondary which I doubt unless you have excellent connections than buy most of what you want to own NOW. It ain't going much lower if at all!
    26 Feb 2014, 08:43 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Glad I didn't buy just yet.
    26 Feb 2014, 04:32 PM Reply Like
  • smallcap sleuth
    , contributor
    Comments (188) | Send Message
     
    I own it and am glad I do. This will bring in major institutional investors and THEY ultimately set the stock price. Don't be fooled this is BULLISH !
    26 Feb 2014, 08:40 PM Reply Like
  • TGP59
    , contributor
    Comments (71) | Send Message
     
    Tesla does the same thing and that crazy stock goes up after hours...
    26 Feb 2014, 04:53 PM Reply Like
  • Freemedia911
    , contributor
    Comments (2) | Send Message
     
    I'm new to Stocks... does this mean it is a "secondary offering" ?? sorry if this is a stupid question just trying to learn as I go.... Thanks
    26 Feb 2014, 05:07 PM Reply Like
  • Stephen Tips
    , contributor
    Comments (411) | Send Message
     
    Hello and Welcome Freemedia911:

     

    No question is stupid (although some of the comments - not so sure).

     

    On February 11, 2014, they filed a Form S-3:

     

    $125,000,000
    Common Stock
    Preferred Stock
    Debt Securities
    Warrants
    Units

     

    We knew this was out there and, although they seem to be flush with cash (and the Roche milestones), I believe it is normal (with successful Biotechs) and necessary to ramp up for projected R&D/commercialization needs.

     

    (IMHO) this is positive, not negative - I would buy on the dip.

     

    Good luck to you!
    26 Feb 2014, 05:17 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Stephen I've read a few articles, and I don't think it is "normal". What we are seeing are firms grabbing for more and more money in fear the QE will eventually taper off and the money flow won't be so "easy". With that said it is a little disconcerting because it means the company has determined that it "needs" the money to be successful -or- that it wants a nice stash just in case times go bad and money is harder to come by.

     

    Unfortunately this is happening across the board in bio-tech and is creating a bio-tech bubble which if the market goes south leaves investors stock cheapened but leaves management sitting on a pile of cash. I would be somewhat distrustful if the company had plenty of cash to begin with. If a company has enough cash to complete objectives then why raise more capital and cheapen the stock.
    26 Feb 2014, 05:38 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    On that line of thinking I believe that bare minimum 50% of the time that management is involved in a conflict of interest with shareholders. I just see it time and time again. Shareholders want one thing and management wants another.

     

    That said this company is highly regarded, but will likely see nice sized dip in share price. Basically the company will wait until things settle and then they will usually price the new stock at or below the existing stock (usually below) which tends to drive the stock down a second time.

     

    So it will go down on announcement and then possibly down a little bit more when they announce the details of the offering.
    26 Feb 2014, 05:42 PM Reply Like
  • EtfcTrader
    , contributor
    Comments (31) | Send Message
     
    I thought that CEO stated there will be no dilution or secondary during the most recent interview, this seems to be very inconsistent. Very odd!
    26 Feb 2014, 06:13 PM Reply Like
  • Freemedia911
    , contributor
    Comments (2) | Send Message
     
    Thanks for the info .....
    26 Feb 2014, 08:51 PM Reply Like
  • User 9812841
    , contributor
    Comment (1) | Send Message
     
    I agree very odd. Perhaps there is a problem with the clinical trial and insiders want to sell $125,000,000.
    I am long Ino
    27 Feb 2014, 12:56 AM Reply Like
  • cain@19445
    , contributor
    Comments (9) | Send Message
     
    Reduced position yesterday but will get back on the dip. no problem
    26 Feb 2014, 05:33 PM Reply Like
  • smallcap sleuth
    , contributor
    Comments (188) | Send Message
     
    I approve of the company being bullet proof from a cash hoard basis. This is honestly a bullish maneuver. Here comes the road show and institutions . Up up and away!
    26 Feb 2014, 08:37 PM Reply Like
  • panchosfc
    , contributor
    Comments (41) | Send Message
     
    then, buy or not for long term???
    26 Feb 2014, 08:41 PM Reply Like
  • seanallen65
    , contributor
    Comments (3) | Send Message
     
    Yes- essentially dilution of the shareholders stock holdings. Burn rate of small biotech's is always a concern- its a race against time to get the positive results out there for gaining approval
    26 Feb 2014, 08:51 PM Reply Like
  • seanallen65
    , contributor
    Comments (3) | Send Message
     
    Yes- essentially dilution of the shareholders stock holdings. Burn rate of small biotech's is always a concern- its a race against time to get the positive results out there for gaining approval
    26 Feb 2014, 08:51 PM Reply Like
  • Book1
    , contributor
    Comments (2) | Send Message
     
    Their adding more stock which dilutes the value of current stock, but we don't know how much. I see it as a buying opportunity .
    26 Feb 2014, 08:52 PM Reply Like
  • seanallen65
    , contributor
    Comments (3) | Send Message
     
    The burn rate of small biotech always gives investors the jitters so I think the drop isn't unexpected. Positive results will easly reverse this slide.
    26 Feb 2014, 08:55 PM Reply Like
  • panchosfc
    , contributor
    Comments (41) | Send Message
     
    Yes true. It s normal with good biotechs!
    26 Feb 2014, 08:55 PM Reply Like
  • Craig Friedman
    , contributor
    Comments (21) | Send Message
     
    This is actually the brilliant move by the CEO. By raising funds now whether its 30 40 or 50 million dollars he is putting the company in a position strength when it comes to negotiating
    with Big Pharma for the various projects they wish to work on with Inovio. When you don't need someones help financially you'll get a much better deal. This is the reason for the funds raising. Imho something must be close in the negotiations for one of their projects. They should have gotten more upfront in the Roche deal and won't let that happen again. This should be the takeaway from the financing. I'm expecting the financing to be at a higher stock price because if they did it at say $4.50 the buyers know the stock will rocket past that and go to much higher levels.
    27 Feb 2014, 12:54 AM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Interesting idea on pricing the stock higher than current levels, but it won't happen on so many reasons I don't know where to start. Well yes I do how would you ever convince a sane person to spend more for something that they could purchase on the free market for cheaper. IMO they should wait until it gets over 5 bucks and then attract REAL investment firms. I stand by the idea that something is fishy.
    27 Feb 2014, 02:31 AM Reply Like
  • VisionMoney
    , contributor
    Comments (51) | Send Message
     
    There was a “heads-up” article about this S-3 filling, by BRG(2/2/14).
    It’s a must read for $INO investors.
    http://goo.gl/A1fpGP

     

    Also BRG asked CEO of Inovio about this S-3 filling in another interview.
    http://goo.gl/mOzN3q

     

    Strategically, shelves(S-3) can be utilized at opportunities when share prices are high.

     

    My guess is that, INO can utilize most of the shelves after reaching its scheduled milestones in 2014 & after the eventual share price increases. (INO has 3 years to utilize it.)

     

    Shelving near $10-$20 per share range can lead to very small dilution for raising whopping $125 million reserve money. ($5 range can be acceptable as well.)

     

    That’d be a brilliant move :-)

     

    Let’s see which moves will be made by the Wharton School graduates at Inovio.
    27 Feb 2014, 06:20 AM Reply Like
  • thierry humblet
    , contributor
    Comments (7) | Send Message
     
    ...."the consensus is that Inovio is utilizing available resources to be prepared to fully fund a Phase lll study without the need of a partner, if they so choose to go it alone".... (Biotech research group)
    27 Feb 2014, 08:42 AM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Not looking I just spied a rumor that the shares will be offered at 2.90

     

    http://bit.ly/1ezSNus
    27 Feb 2014, 09:03 AM Reply Like
  • Stephen Tips
    , contributor
    Comments (411) | Send Message
     
    Hi, Seth:

     

    Usually, I do not comment in this manner but, as I stated above to Freemedia911, “There are no stupid questions (although some of the comments . . .).”

     

    You have made 5 comments here and I feel as though a response is required (please understand, I really do not mean to be in any way disrespectful):

     

    First you stated: “Glad I didn’t buy just yet.”

     

    Then you responded to my post and stated: “I’ve read a few articles . . .” and “. . . if the market goes south leaves investors stock cheapened but leaves management sitting on a pile of cash.”

     

    Then you state: “. . . management is involved in a conflict of interest with shareholders . . . Shareholders want one thing and management wants another.”

     

    Then (in your last comment), you state: “I just spied a rumor that the shares will be offered at $2.90,” and link to an article from “Fly On The Wall.”

     

    I have purchased INO shares, over and over and over, etc., so I have a hefty and very LONG position in INO. Some call this: “Skin in the game.”

     

    I have read articles; 100’s. Some call this: research and due diligence (DD).

     

    Dr. J. J. Kim, President and CEO of Inovio Pharmaceuticals, is a large shareholder in the company (11,940,809, shares effective 04/02/13), and he has established partners with the likes of Roche, University of Pennsylvania (UPenn), Merck and Co., University of Southampton, HIV Vaccine Trials Network, National Institute of Allergies and Infectious Diseases (NIAID), US Military Research Program (MHRP), Path Malaria Vaccine Initiative (MVIPath) established in 1999 through a grant from the Bill and Melisa Gates Foundation, U.S. Department of Homeland Security, National Cancer Institute, and others. If shareholders lose, Dr. Kim loses.

     

    If you are seriously interested in Biotech companies (I own many and have been “lucky,” some are up 165%, 145%, 96%, 72%, 71%, 65%, 58%, etc. Not always, but often right.). Rather than seek third-party information from “Fly On The Wall,” you should sign up to receive instant message Alerts directly from the companies, such as the example of this very Alert:

     

    http://bit.ly/1eqaGQS

     

    Of all the Biotech companies, INO is the diamond. It is not just about money; INO should change medicine forever and therefore treat and cure many who will benefit from their success.

     

    As I have stated before, elsewhere: “Hey, it’s a bull market. One of my relatives tells me you could throw darts at a board; what do I know, right?”

     

    My purpose is not to offend anyone, nor continue with this discussion, so let’s be friends and leave it at peace, good health, and wealth to all . . .
    27 Feb 2014, 12:13 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    First, of all I don't think you actually commented on anything I had to say but instead insinuated that I had "stupid comments".

     

    Second, you said "no disrespect" which we all know really means disrespect.

     

    Third, you also didn't comment to the fact that I said the company was "highly regarded".

     

    Fourth, I definitely was able to clear up a comment from another reader about the pipe dream that a second offering would be priced above the current share price. THAT NEVER HAPPENS. You didn't comment to that either.

     

    Fifth, You were very fortunate to be involved in the run up. It is to NEW investors I am talking to that might be able to purchase at more of a bargain in the short term.

     

    Sixth, since you managed a very passive aggressive style at insults. I'll show you how to do it correctly. You are a moron. See how easy that is?

     

    Seventh, Management is at odds with shareholders based on fundamental behavior alone. It is not speculation, and it is a reality to varying degrees with all company. Shareholders care almost exclusively about profit while management cares about their legacy, intangibles, sometimes creating a better world, status, admiration.
    27 Feb 2014, 12:26 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    By the way I don't think you are a moron just pointing out how condescending you were.
    27 Feb 2014, 12:26 PM Reply Like
  • Stephen Tips
    , contributor
    Comments (411) | Send Message
     
    I did not insinuate that your comments were stupid, I stated: (although some of the comments - not so sure). Later, I stated, “what do I know?” So, “Not So Sure.”

     

    When I stated I meant no disrespect, that is exactly what I meant. You or “we all” can interpret any way you like; free country to make your own opinions/conclusions.

     

    You responded to my original post. I did not comment on everything you wrote because that was not the reason for my response. I was responding to comments you made with which I disagree and/or wanted to clarify.

     

    I do not understand how you could possibly know that I was, “. . . very fortunate to be involved in the run up,” unless you are looking over my shoulder or have a crystal ball.

     

    I apologize if you feel that I, “. . . managed a very passive aggressive style at insults.” I also stated: “My purpose is not to offend anyone,” and obviously you did not see it that way, but whether or not, there is no need to call anyone names. We are not children.

     

    I realize you later added, “I don't think you are a moron just pointing out how condescending you were.” But the damage was fait accompli.

     

    Life is too short. I try to treat people the way I want to be treated and I am sorry if you feel disrespected.

     

    I will end (again) with: My purpose is not to offend anyone, nor continue with this discussion, so let’s be friends and leave it at peace, health, and wealth to all . . .
    27 Feb 2014, 01:05 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    Thank you for the response. I wish you profitable trading today. I honestly enjoy playing the bio-tech run up game, but investors should be aware that there are times that you can expect a stock to stagnate, and regress especially in bio-tech, and especially upon news of dilution as a stand alone news point.
    27 Feb 2014, 01:21 PM Reply Like
  • Stephen Tips
    , contributor
    Comments (411) | Send Message
     
    Seth, my new friend:

     

    What you stated is very true.

     

    IMHO with INO: When this takes off, and I really see no reason why it won't (the data is too powerful to ignore), the entry at $.37, or $4.50, will absolutely make no difference in the scheme of things.

     

    BTW: I think the $2.90, offering price will not be for the likes of retail investors, unless you have a connection.

     

    Good luck to you, also.
    27 Feb 2014, 01:54 PM Reply Like
  • sethlemay
    , contributor
    Comments (198) | Send Message
     
    You've made a great investment. Honestly this is the #1 choice in my Bio Trades Group along with ATHX and RNN
    27 Feb 2014, 02:04 PM Reply Like
  • Stephen Tips
    , contributor
    Comments (411) | Send Message
     
    I also own ATHX.

     

    A few others:
    NVAX
    XOMA
    RMTI
    SYN
    SNSS
    AUXL
    BSTC

     

    Disclosure: I am not recommending anything - just mentioning "Tips." Do your own DD - win or lose. Good luck investing.
    27 Feb 2014, 02:13 PM Reply Like
  • GreenGrowthGeek
    , contributor
    Comments (1148) | Send Message
     
    Check out BNIKF Seth--huge upside, limited downside.
    1 Mar 2014, 08:41 PM Reply Like
  • wong123
    , contributor
    Comment (1) | Send Message
     
    oh my god. they offered it at 2.9? i would cry..
    27 Feb 2014, 02:08 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs