Time to exhale

Time to exhale

We really don’t want to say we told you so, especially since Momma Kliff told us never to gloat, but why do we feel like MannKind (NASDAQ: MNKD) is getting ready to exhale. This stock has been on rocket ride upward until today that this. Yep in what looks like a classic pump and dump the company announced they have completed a private placement. Per a company issued press release;

“MannKind Corporation (NASDAQ:MNKD) and (TASE:MNKD) today announced that it entered into definitive agreements with certain institutional investors and other investors in connection with a registered direct offering of an aggregate of 10,166,600 shares of common stock at an offering price of $6.00 per share, for gross proceeds of approximately $61 million. The offering is expected to close on or about October 13, 2017, subject to the satisfaction of customary closing conditions.”

In very early trading shares are already down some 10% but like we said it’s still early. However, we cannot help but believe that MannKind shares will do what they always do after a huge run up, they will head south. As we have noted on many occasions MannKind shares have had more ups and downs than a roller coaster.

Yet, the Afrezza believers each and every time this happens say this time will different. That this time the company is on solid ground and Afrezza sales will skyrocket from this point forward. To wit we remind these people of something Momma Kliff used to say; “Yes, it is possible that this time is different. It’s also possible that the difference this time is not the eventual outcome but there is new group of fools who have yet to be burned who believe this fantasy.”

Now just to show we are not cold hearted and mean-spirited kudos to MannKind management for pulling a rabbit out of the hat. Which ironically may give hope to another group of beleaguered shareholders who happen to own Tandem (NASDAQ: TNDM). Another company which has mismanaged themselves into financial peril. As we keep stating Tandem is in desperate need of capital has just completed a reverse stock split and now may once again head back to the capital markets.

Like MannKind, Tandem management has a plausible story to tell and if there is one thing investment bankers like is plausible story to tell. Yes, they can spin a yarn about how this time it will be different. Yes, it looks bleak now and yes, the company hasn’t exactly done that well up to this point. But believe us this time they will get it right, no more stupid decisions no more wasting money.

Which just goes to show that investment bankers follow a maxim set by Canada Bill Jones who noted it’s immoral to let a sucker keep his money. Listen once these guys collect their fee they could care less what happens, yep as we say over and over this is about money who makes it and when it comes to these investments who loses it.

But maybe just maybe it is different this time and maybe just maybe the Bears will win the Superbowl this year.