Why CYDY held the CC yesterday…..There have been
Post# of 154851
(Total Views: 685)
Posted On: 07/31/2020 12:09:40 PM
Why CYDY held the CC yesterday…..There have been a few posts questioning the reasoning for the CC yesterday, I believe there were three reasons (not in order of importance):
1.) Transparency: Nader sees transparency as a core value (personally and for the company). He knew there was significant shareholder anticipation of the trial results, he had some information and he felt obligated to be transparent. A larger company wouldn’t feel the need to be as transparent (for better or worse depending on your perspective).
2.) Financing: I believe they see the financing deal as big or bigger than the trial results and they wanted to explain in more detail how important that was to the company. As someone who has had to manage multi-year budgets – having a little money in the bank provides significant breathing room and allows management to focus on “the real work”. My perspective is that this is a bigger deal than the market or shareholders are giving it credit.
3.) Shareholder Meeting CC Redo: The shareholder meeting audio was a disaster and they knew they had to hold a Q/A within 2 – 3 weeks to be relevant. A larger company wouldn’t have had the audio issues – or the need to redo the Q/A.
We can ruminate on the wisdom of holding the call, although I believe management thought they owed shareholders a Q/A session, they had good news on financing, and could telegraph positive results on the CD10 trial. The nature and flavor of the call is a result of CYDY being a small biotech with the management it has (again, for better or worse – depending on your perspective).
My conclusion as a long is to hold (I have exceeded my normal investment allotment to a single stock) – by all measures we have good things coming soon. While I understand much of the frustrations of the FDA trial/approval process, management stumbles, short attacks, MM manipulation, etc. etc. – we have no control or influence (or very little) on those items and I choose not to get worked up about them.
1.) Transparency: Nader sees transparency as a core value (personally and for the company). He knew there was significant shareholder anticipation of the trial results, he had some information and he felt obligated to be transparent. A larger company wouldn’t feel the need to be as transparent (for better or worse depending on your perspective).
2.) Financing: I believe they see the financing deal as big or bigger than the trial results and they wanted to explain in more detail how important that was to the company. As someone who has had to manage multi-year budgets – having a little money in the bank provides significant breathing room and allows management to focus on “the real work”. My perspective is that this is a bigger deal than the market or shareholders are giving it credit.
3.) Shareholder Meeting CC Redo: The shareholder meeting audio was a disaster and they knew they had to hold a Q/A within 2 – 3 weeks to be relevant. A larger company wouldn’t have had the audio issues – or the need to redo the Q/A.
We can ruminate on the wisdom of holding the call, although I believe management thought they owed shareholders a Q/A session, they had good news on financing, and could telegraph positive results on the CD10 trial. The nature and flavor of the call is a result of CYDY being a small biotech with the management it has (again, for better or worse – depending on your perspective).
My conclusion as a long is to hold (I have exceeded my normal investment allotment to a single stock) – by all measures we have good things coming soon. While I understand much of the frustrations of the FDA trial/approval process, management stumbles, short attacks, MM manipulation, etc. etc. – we have no control or influence (or very little) on those items and I choose not to get worked up about them.
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