1 Biotech's Surprise Dilution Decoded
Biotech investors are never safe from the quiet robber of wealth -- dilution. Although too many managers in the sector see raising cash at the expense of shareholders as relatively victim-less, oftentimes debt markets just aren't an avenue available to these companies. But even investors who do their homework and feel good about a company's financial position can be caught off guard.
In this video, health-care analyst David Williamson takes a closer look at one such case, Isis Pharmaceuticals. Shares plunged 10% after a surprise announcement to raise $170 million. Watch and find out the reasoning behind Isis' surprise announcement and what investors should make of it.
Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report, "Everything You Need to Know About Obamacare," lets you know how your health insurance, your taxes, and your portfolio will be affected. Click here to read more.
The article 1 Biotech's Surprise Dilution Decoded originally appeared on Fool.com.
David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid.The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
