Flatlander schreef op 12 december 2019 16:16:
It is concerning that both Sycamore and JnJ are reducing their stakes at the same time that BCART seems to be on the cusp of several developments that should be huge positives. I'm trying to get a better understanding of Sycamore Asset Management. How much of a momentum strategy do they follow? I don't mind being too early to an equity position, it has happened on several occasions, but has generally worked out well in the long run. However, long term major shareholders reducing positions is rarely a good sign. I don't like the feeling that BCART is limiting transparency into information that these larger shareholders likely have access to.
I think BCART needs to provide information on who purchased the convertible bonds and given the structure of the offering, and provide information on what the company's ownership will look like at the time of full conversion of the bonds to shares. I initially liked the fact that BCARTS ownership was widely fragmented. My fear is that the convertible will result in the potential for ownership to become concentrated at the time that the BCART is very profitable. Based on the press release, the conversion price is based on the share price on the Nov 14 offering date. Assuming 150 million at the close price of 6.30 it looks like we are talking about roughly 23.8 million shares shares converting in 2024. Currently there are about 55.5 million shares. I think BCART really needs to provide some information on the convertible ownership.
The only other negative I see at this point is we just don't know the financial terms of any of the partnerships. I suppose that it could be a concern but I doubt that this is as big a deal as the convertible ownership structure.
Now for some good news. OncoDx Breast keeps racking up validation publications.finance.yahoo.com/news/evidence-large...