Everything is about control. Business is no except
Post# of 30028
Posted On: 04/08/2015 12:31:19 PM
Everything is about control. Business is no exception.
In business, there are no friends. All business entities want to get to advantageous positions, either through own effort or leverage on others, e.g. through partnership, to add business value.
BP, being big fishes, naturally assess that they can exert control over “small fish” AMBS, whether in possible partnerships or deals. This is not unexpected.
While many judge Gerald by AMBS share price, Gerald’s way of business is able to strike resonance with me. Having travelled a long hard journey, I understand perfectly the struggles Gerald is going through as a small start-up.
IMHO, Gerald has shared too much on his plans and thoughts in the public. This puts himself in the open while other parties are lying in the dark, not a good business strategy unless this is a diversion tactic. For example, by sharing his eagerness to uplist, he will surely face hard bargaining from potential partners, putting more hurdles to deal closure. While it is pleasing from public shareholders’ perspective to be kept updated on his plans, it is not pro-business for this aspect at this early stage. The irony is that some public shareholders are on the contrary unhappy with Gerald as a result of his open communication.
Nevertheless for those who are still in doubt of AMBS, do note that AMBS can always choose to take the path like INO. INO agreed a low-$10m-upfront-fee deal with Roche and INO’s market capitalisation was instantly catapulted to $500m+ if I am not wrong. Given several promising products in its pipeline, I believe AMBS should have received similar deal offers. Take comfort that if it comes to desperation one day, AMBS may adopt this last resort like INO and all of us will still enjoy a good capital gain, even if the full 2 billion authorised shares are issued. Maybe AMBS feel it this way too and are not too concerned.
Business is about control. Once the control is lost, the business will deteriorate or be lost. A bitter pill to take but the truth is that the public shareholders are the last priority at this stage.
In business, there are no friends. All business entities want to get to advantageous positions, either through own effort or leverage on others, e.g. through partnership, to add business value.
BP, being big fishes, naturally assess that they can exert control over “small fish” AMBS, whether in possible partnerships or deals. This is not unexpected.
While many judge Gerald by AMBS share price, Gerald’s way of business is able to strike resonance with me. Having travelled a long hard journey, I understand perfectly the struggles Gerald is going through as a small start-up.
IMHO, Gerald has shared too much on his plans and thoughts in the public. This puts himself in the open while other parties are lying in the dark, not a good business strategy unless this is a diversion tactic. For example, by sharing his eagerness to uplist, he will surely face hard bargaining from potential partners, putting more hurdles to deal closure. While it is pleasing from public shareholders’ perspective to be kept updated on his plans, it is not pro-business for this aspect at this early stage. The irony is that some public shareholders are on the contrary unhappy with Gerald as a result of his open communication.
Nevertheless for those who are still in doubt of AMBS, do note that AMBS can always choose to take the path like INO. INO agreed a low-$10m-upfront-fee deal with Roche and INO’s market capitalisation was instantly catapulted to $500m+ if I am not wrong. Given several promising products in its pipeline, I believe AMBS should have received similar deal offers. Take comfort that if it comes to desperation one day, AMBS may adopt this last resort like INO and all of us will still enjoy a good capital gain, even if the full 2 billion authorised shares are issued. Maybe AMBS feel it this way too and are not too concerned.
Business is about control. Once the control is lost, the business will deteriorate or be lost. A bitter pill to take but the truth is that the public shareholders are the last priority at this stage.
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