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Protalex Plummets On Strange Stock Offering
Posted on 10/26/2007 00:15 AM | Link | Post Comment
by H.S. Ayoub, DMD
BioHealth Investor
What must be the strangest stock offering of all time, at least in my trading experience as limited as it is, Protalex Biotherapeutics (PLX) sold 10 million additional shares on the market today at $5 per share. Why strange? Because the stock closed at $36 a share on Wednesday! Today, the stock's wild trading session ended at a price of $6.31
Why would the company sell their stock at a price so much lower than market valuation? Even more strange is that Phillip Frost, the founder of IVAX and the main player behind recent successful stocks such as Ladenburg Thalmann Financial Services (LTS) and Opko (OPK), held around 11% of Protalex stock. That means Dr.Frost had lost more than $200 million after the stock offering. This is not indicative of his investment track record, not even close.
There has been no word from anyone related to the company, nor Dr.Frost. It is in the company's best interest to release some kind of statement for investors as I am sure many will not be sleeping well tonight.
RELATED READING:
- eXegenics: Dr.Frost Continues His Hot Hand
- Follow Along with Dr. Frost and Invest in Continucare
BioHealth Investor.com
_______________________
BioHealth Investor
What must be the strangest stock offering of all time, at least in my trading experience as limited as it is, Protalex Biotherapeutics (PLX) sold 10 million additional shares on the market today at $5 per share. Why strange? Because the stock closed at $36 a share on Wednesday! Today, the stock's wild trading session ended at a price of $6.31
Why would the company sell their stock at a price so much lower than market valuation? Even more strange is that Phillip Frost, the founder of IVAX and the main player behind recent successful stocks such as Ladenburg Thalmann Financial Services (LTS) and Opko (OPK), held around 11% of Protalex stock. That means Dr.Frost had lost more than $200 million after the stock offering. This is not indicative of his investment track record, not even close.
There has been no word from anyone related to the company, nor Dr.Frost. It is in the company's best interest to release some kind of statement for investors as I am sure many will not be sleeping well tonight.
RELATED READING:
- eXegenics: Dr.Frost Continues His Hot Hand
- Follow Along with Dr. Frost and Invest in Continucare
BioHealth Investor.com
_______________________
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