Their report does touch on several themes I have postulated. IMHO of course.
One I have not posted here but have been thinking of this year and they suggested, was a buyout possibility. It really is the best long term solution for this company. A topic for later perhaps. Much later.
Rodney, that is very curious indeed. Was there an analyst on CNBC that mentioned either company? I talked with Hedrick for about an hour yesterday and he had no idea why the volume was so high. Yes, the company is making significant progress on all fronts (except the stock price), and B. Riley did initiate coverage, but still the volume makes no sense.
It is possible that a few trading desks sold each other the stock back and forth to create the illusion of heavy volume to attract some hot money. At the end of the day, nothing really happened except we are all wondering what is going on! With the exception of the FDA approving the RELIEF Trial's perimeters, there is really nothing anticipated until the STAR results in June/July. Of course, we know something has to happen to address the cash issue and it has to happen in the next 90 days. Take note of the fact that B. Riley's spreadsheet calls for the shares outstanding to grow by 7,550,000 in the 2nd quarter of 2017.
Did Hedrick have discussions with B. Riley? Wondering how they started coverage all of a sudden. If your speculation about the volume is true, that would clearly be illegal manipulation. Its as good as an explanation as any. Riley stated they need to raise $22mm in the next 2 years.
DOV, if Hedrick had no explanation for the volume increase, then he could either not tell you for insider reasons, or perhaps the absurdity of the CNBC mix-up actually happened -- the latter would be a true disappointment - however, the Riley recommendation did result in a nice 9% increase before all the fireworks began at about 2.35 pm.
PS - not happy about Rileys share increase projection in Q-2 - makes their recommendation suspect.
Hedrick only said B. Riley is a small regional firm based in LA, but they are well respected. I did not probe that line of questioning, but I do think the introduction to Cytori probably started with the LD Micro conference.
Riley's projected share count increase assumes there will be no partnership to bring in non-dilutive capital. Most on this board believe that will be the case as well. It must be one or the other or a combination of both. The company will run out of money ($5 million balance covenant) soon. Available cash balance on 9/30/16 was $9,924,000. The 4th quarter cash burn should be around $4.2 million with a similar burn in the 1st quarter.
Whether B. Riley and Maxim are involved or whether the ATM is used remains to be seen. The ATM can only raise roughly $8.4 million at today's price.
DOV, it's hard to believe that Hedrick spent one hour of his time with you - did he give you any hope for a parnership? - why is Tiago over in Japan and Hedrick is here with an hour of time to spend with you? - makes no sense and it's no wonder that nothing gets done at CYTX - plus, I find it interesting that you are not apparently disturbed about another cash raise - do you ever expect to recover your cost basis - you certainly do not convey the positivism anymore that you once did in the past - just saying!
Just because we are long the stock doesn't mean we cant and as with any investment, be objective.
Slowly but surely the lodge seems to be coming to what I consider the likely realization of events to happen.
Maxim also drastically lowered earning for the next few years.
B Riley even lower than Maxim
It completely out of our control anyway.
The same issues for more than a decade.
All I can tell each of you is if you simply do a Twitter search or Stocktwits search on good ole $CYTX you'll see exactly what I'm referring to on the CNBC mix-up. People were talking about it everywhere. I'm of firm belief this is why the stock jumped, sadly. Especially if Hedrick was clueless, but he tends to always play that card to our faces and then rams us up the backside.
5874, it appears now that there is no question that CNBC screwed-up and the heavy Friday volume was caused by that screw-up - hard to believe that the "herd" mentality is still that strong in today's market - will be interesting to see what happens on Monday, but my guess is that a lot of the "herd" buyers realized their error on Friday and sold afterwards.
rodney.strongg wrote: DOV, it's hard to believe that Hedrick spent one hour of his time with you - did he give you any hope for a parnership? - why is Tiago over in Japan and Hedrick is here with an hour of time to spend with you? - makes no sense and it's no wonder that nothing gets done at CYTX
So after insulting me, you want me to answer your questions! As they say in the UK: piss off!
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DOV, I re-read my post and it could have been worded much better - when I said "you", I meant it as Hedrick spending one hour of valuable time with a retail s/h, not you in particular - you are actually more valuable than most in terms of shares owned.
You must admit that you certainly are a lot less positive about CYTX than in the past, but that is your right and I should not judge that - I truly apologize if I unintentionally offended you.
Something interesting in B. Riley's report, this caught my eye:
"Meanwhile, the company continues to anticipate reductions in G&A as they continue to trim fat and have an opportunity to move to a less expensive facility next year."
Anyone know about the potential relocation of the company, or anyone chatted with Marc about what new building they are targeting?
I would assume their current lease is absurdly high compared to other buildings available, given its location right next to Torey Pines and the ocean. Seems like a long overdue change, and I applaud the management team for continuing to look for savings if this is true. Better late then never.
Rodney is correct. This mentality is exactly why nothing gets done, and why targets and forecasts are missed, etc. Hedrick has a throw caution to the wind mentality, a lackadaisical mentality (not an obsessive one geared at success), and places great emphasis on the quality of his own life: hour long phone calls with a single shareholder, golf, travel, earning calls taken lightly to the extent of embarrassment while giggles at the lobbed questions from analysts they're in bed with can be heard, etc. It is not the mindset for success. It is not the mindset that encourages partnerships with big business, with focused men who know what it takes to succeed because they've done it.
Hedrick has a throw caution to the wind mentality, a lackadaisical mentality (not an obsessive one geared at success), and places great emphasis on the quality of his own life: hour long phone calls with a single shareholder
Conversations with major shareholders can be productive if you have something to say. Using bankers and dealmakers to line your pockets and dupe investors eventually manifests itself in failure.
CYTX has been talking to Riley for about a year and the decision to provide coverage followed the LD Micro Conference. My concern is whether Riley really believes in CYTX or sees a nice profit for their firm in a potential CYTX offering next year - Riley's spreadsheet supposedly includes a 7.5 million share increase in Q-2 of 2017.
Of course shares outstanding will be increasing and Riley isn't here out of the goodness of their heart !
The first OA peek set the stage and confirmation was seen in the summer. They would need to raise.
Your Hedrick knows better or private placement BS is completely meaningless. DILUTION will be coming.