MannKind has been a very interesting stock to follow to say the least. Since I heard of the stock, I’ve been a bull. However, with short manipulation driving the stock down, it’s getting harder and harder for many REAL INVESTORS to hang on. Now, I know I’m going to hear it from the bears for saying this, but I’m still a bull; and for good reason. While the company continues to struggle at the moment, I think that they have a golden egg laying goose; and in the long run, this will pay off.
I Understand The MNKD Bears
First and foremost, I have to say that I understand the MNKD bears. The reality is that no matter how much bulls want to say that the bears don’t have a leg to stand on, they do. As a matter of fact, their argument is incredibly valid. Afrezza was approved quite a while ago; and we haven’t seen a drop in the bucket with regard to sales. No matter which side you’re on, this can be concerning. However, if you’re not looking at the long term value proposition of the stock, it’s down right damning! After all, if you’re not in it for the long haul, chances are you aren’t going to see gains.
There’s Plenty Of Ammo On The Bullish Side Of MNKD
While I understand the bullish argument, I think that there’s a key difference between the bulls and the bears. The reality is that the bulls have plenty of ammunition in this fight. The key difference between the bulls and the bears is what they are doing; trading or investing. Investors that are looking into the long term on the stock are almost all bulls while traders are bears. So, what has investors so excited about the long run? For me, the question is “What doesn’t?” There are several things for bullish investors to be happy about…
- Afrezza – Afrezza in and of itself is incredible. It is the first treatment of its kind. Let’s face it, even if you’re not afraid of them, chances are that you don’t like shots. Unfortunately diabetics have to give themselves shots all the time. While Afrezza doesn’t take the need for the needle out of the diabetic’s life entirely, it does offer some relief in the before meal sense. After all, Afrezza is an inhaled insulin. Now, I know that the bears will argue that if that meant anything to diabetics, we’d see a difference in sales. However, most diabetics still don’t even know that Afrezza exists; so, we can’t quite expect to see sales just yet.
- Increased Production Capacity – MannKind announced recently that they have tripled their production capacity with regard to Afrezza. For many, doing so really doesn’t make sense. After all, if the company can’t sell what they have, why do they need to make more? Well, there are a couple of reasons. First and foremost, MannKind will be starting the Direct to Consumer phase; ultimately raising awareness among members of the diabetic community. When this happens, sales are likely to increase. However, there’s a more important reason. MNKD is working on gaining regulatory approval in Europe and Asia for Afrezza. If and when this happens, the company will need the capacity to produce enough of the product to match demand. Considering comments made on the earnings call, European approval is nearing and the increased capacity will pay off.
- Normalizing Lives For Diabetics – I’ve done quite a bit of research to find out what those actually taking Afrezza at the moment think of it; and the research has proven to be fruitful. Not only does Afrezza not require an injection, it also seems to normalize the lives of the diabetics taking it. You see, one of the biggest fears for diabetics is blood sugar spikes. Many of the consumer reviews I’ve read stated that not only is it a great before meal insulin, they’re not having issues in the middle of the night due to unstable blood sugar levels. If you’re diabetic or know someone who is, chances are that you know how much of a big deal that is.
The bottom line is that the bears have a point… we haven’t seen sales of Afrezza reach what they need to. Nonetheless, I don’t think that MNKD is going to struggle long term. As more and more diabetics become aware of the solution and regulatory approval in other areas becomes reality, Afrezza will sell; ultimately leading to profits for investors and better lives for diabetics. Considering that MNKD has dipped below $4 per share, I also predict that we are going to reach support on the stock relatively soon. So, now may be the best time to buy as discounts aren’t likely to get any bigger.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!