Viking Therapeutics, Inc. (VKTX) Social Stream



Viking Therapeutics, Inc. (VKTX): $3.77

-0.12 (-3.08%)

POWR Rating

Component Grades

Growth

S

Value

I

Momentum

G

Stability

N

Sentiment

U

Quality

P

Featured Post From StockTwits About VKTX

$VKTX - Issuing more shares (dilution) does not reduce the inherent value of a company. The net worth per share remains constant. It is only when the company spends the money they raised that the net worth of the company (book value) declines. When a company finally generates earnings, those earnings are spread out over more shares, hence "dilution". But this is a necessary process as all companies need to dilute in order to raise capital so they can eventually have earnings. Apple for example has 16BBl shares. That a company even has the ability to sell new shares is testament to their credibility in the marketplace. Biotechs need enormous capital as they have to go through multiple phases to bring drugs to the market. VKTX has done an excellent job raising capital, using good news and rising prices to raise more money. Being ready (hence the term "ATM") is a way to take advantage of a sudden spike. My take is that VKTX is expecting good news from Voyage and wants to prepare for P3.
JCMV, published August 12, 2021

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