4 Stocks Looking to Dilute and Conquer

Dilution is a way of life in the biotech industry. The timeline for getting drugs through each phase of development and in front of the FDA for approval takes many years. More often than not, a few handfuls of them. That kind of timeline requires boatloads of cash, and one of the most common ways to get it is by selling additional shares of stock. Today, Brenton Flynn and Max Macaluso outline some of the most recent offerings to hit the market, including one company with a massive 150% increase in shares outstanding since the end of 2011.

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Brenton Flynn, Max Macaluso, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On October 26, 2012, at 6:25 PM, WCoastGuynCA wrote:

    In regards to Mannkind (MNKD) Al Mann and the Mann Group committed over $350,000,000 to the company last week in the form of debt conversion at $2.59/share and the purchase of new shares at $2.00/share and warrants with a $2.60 conversion price.

    Funding through approval is no longer a concern for Mannkind.

    With the short interest over 30,000,000 shares the shorts were thinking that they would have access to the new secondary shares to cover their positions. Those share will now be held off the market.

    Mannkind at under $2.00 is a bargain here. It could easily double or triple by the time Afrezza is approved and a partnership is announced.

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