When will these people learn?
One would think at some point the supporters of MannKind (NASDAQ:MNKD) would come to the realization that this dog don’t hunt. That to paraphrase one of the best rants in NFL history “This stock is what we thought it was, a dog with flees.” That it’s time to move on to another pump and dump. No that would be paramount to admitting they made a mistake that they really don’t know jack about the wacky world of diabetes. Even worse it would a public admission that not every stock they pick is a winner. Simply put it would tantamount to admitting they are dumber than dirt for investing in MannKind.
Yes it seems that Ken and Gomer have a new friend in Robert Sacher, who according to his profile on Seeking Alpha is “I am not a professional investment adviser. That being said, I have spent hundreds of hours researching Mannkind over the years I have been invested. I know this stock. I know Mannkind.”
Well according to Robbie;
“Investors have to make decisions as to whether or not MannKind’s price per share has hit bottom or whether the price per share will sink lower, so low that the stock might be trading at a price lower than what it traded at before the F.D.A. approval. However, taking into consideration the possibility of new product announcements making use of MannKind’s patented Technosphere technology and a belief that Afrezza will eventually make a big impact within the insulin market, investors may have a great deal more upside than downside from where the price per share is currently located.”
Please excuse us as it took Diabetic Investor a little time to stop laughing while we read that. Listen this is a stock that has fallen almost 22% since Afrezza was launched in early February and over 40% since they announced their partnership with that soap opera turned three ring circus Sanofi (NYSE:SNY). Now we may not be the brightest blub on the tree or the sharpest knife in the drawer but saying investors need to make a decision on whether this stock has hit bottom is like asking how much water does the Titanic have to take on before it sinks to the bottom of the ocean.
What’s truly assuming, and believe us that’s saying something given all that’s been written about MannKind, is Robbie’s rational for being long the stock. Yep this man who knows MannKind is scouring patient blogs and Twitter and using what he reads as the rational for investing in MannKind. Robbie states;
“Pundits claim a myriad of reasons why Afrezza will fail to gain adequate success in the marketplace but early adopters are clearly writing very positive accounts in various highly regarded diabetes forums about the success they are having with Afrezza. More and more people are also talking about their success with Afrezza on individual Twitter pages while naysayers write that those people are not credible and should not be believed.”
Now we hate to burst Robbie’s bubble but no one has ever said that these people are not credible. Nor has Diabetic Investor ever stated that Afrezza does not have a place in the treatment paradigm. No what we’ve said consistently is that Afrezza will be a niche product and that the only difference is that it’s inhaled rather than injected. That Afrezza is not a superior short-acting insulin that it is no better than Novolog or Humalog. Heck if Robbie who says he’s knows everything MannKind really did know anything at all he would know that the company has publicly stated this many times.
What’s totally assuming is this claim that MannKind, a company not in great shape financially even with the Sanofi deal, has a pipeline full of products that will use the Technosphere technology. Yea sure and the New York Knicks are going to make the NBA playoffs.
Honestly for a guy who claims to know everything MannKind one just might think that he would know this company has a host of issues and nothing substantive in their pipeline. Just as Sanofi is one hit diabetes wonder with Lantus, Afrezza is all MannKind has. Come to think it the more we look at this partnership the more it makes sense as neither Sanofi nor MannKind can produce multiple winners in their diabetes portfolio. Heck MannKind can’t even do one as there is no way anyone can claim Afrezza is a hit.
Yes there will likely come a point when the stock falls so low that it’s worth gambling on as even a dead cat bounces when thrown out of high rise window. Being all knowing about MannKind even Robbie can figure this out by looking at a stock chart. The fact is MannKind stock has had more ups and downs than Boston has snow.
Diabetic Investor has a suggestion for Robbie, get together with Ken and Gomer and during a communal splash, and in honor of Sanofi we would recommend a buttery chardonnay or perhaps nice orange swift, discuss why MannKind is a good investment. In the meantime my friend Lucille and I will enjoy a good Grey Goose and talk about why Cabo is better vacation spot than Key West. That is if we can stop laughing long enough the next time these three MannKind “experts” write something new.
Honestly when will these people learn.