Seeking Alpha

sheldond's  Instablog

sheldond
Send Message
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
View sheldond's Instablogs on:
  • IBIO After Dilution A Trade With Big Upside!

    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.

    Apr 26 10:49 AM | Link | 7 Comments
Full index of posts »
Latest Followers

StockTalks

  • $SZYM buying position today for a short term trade 8$ has been bottom so I might avg down if it breaks that once but looking for around $10
    4 days ago
  • Today's portfolio $TZA, $TNXP, $GRPN, $BIND, $MATR and some other small building blocks and 35% cash. TZA holding me up in a down day
    Sep 9, 2014
  • $MGT I sold all shares. Maybe leaving some profits but sign ups and fantasy football have been underwhelming and site went up late so maybe
    Sep 8, 2014
More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.