"all companies come public to access capital" - 4k
Post# of 72446
(Total Views: 235)
Posted On: 04/24/2017 9:35:04 AM
"all companies come public to access capital" - 4kids
THIS IS VERY IMPORTANT. As 4kids says, there is such a thing as LEGITIMATE dilution that is necessary for the company. When you invest in a development-stage biotech, as CTIX was when many of us first bought (now it's a clinical-stage company -- a HUGE step) -- you know that the company is going to need to raise capital. This is part of being an educated investor. You know that the company is going to have to do some kind of financing to pay for the clinical trials.
One of the absurd things at lieHUB was when the bashers kept saying "there's no income." Well OF COURSE there's no income, that's what biotech research companies do -- research -- with no income because they are DEVELOPING the drugs. Then, they often sell the drug or the whole company to a big pharmaceutical company that wants to do marketing and manufacturing.
CTIX has had very little dilution compared to most small biotechs. I was thinking about all the failed Patrick Cox picks from his newsletter, like NNVC and AMBS. NNVC is still limping along, but AMBS had good science but horrible toxic financing. It was the toxic financing that destroyed AMBS's shareholders -- the science was bought, but the shareholders got killed.
THIS IS VERY IMPORTANT. As 4kids says, there is such a thing as LEGITIMATE dilution that is necessary for the company. When you invest in a development-stage biotech, as CTIX was when many of us first bought (now it's a clinical-stage company -- a HUGE step) -- you know that the company is going to need to raise capital. This is part of being an educated investor. You know that the company is going to have to do some kind of financing to pay for the clinical trials.
One of the absurd things at lieHUB was when the bashers kept saying "there's no income." Well OF COURSE there's no income, that's what biotech research companies do -- research -- with no income because they are DEVELOPING the drugs. Then, they often sell the drug or the whole company to a big pharmaceutical company that wants to do marketing and manufacturing.
CTIX has had very little dilution compared to most small biotechs. I was thinking about all the failed Patrick Cox picks from his newsletter, like NNVC and AMBS. NNVC is still limping along, but AMBS had good science but horrible toxic financing. It was the toxic financing that destroyed AMBS's shareholders -- the science was bought, but the shareholders got killed.
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