I suggest you to look at the complete charts of th
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Posted On: 09/20/2017 8:29:33 PM
I suggest you to look at the complete charts of three very successful companies: REGN, PCYC, JAZZ. You'll see there were really long period of down time followed by parabolic rises. Why? Because clinical trials take a really long time before drugs can generate revenues. IPIX is no different. It's going through the same long down time. Once a drug starts generating revenues, whether through partnership or after approval, its stock price can be valued more accurately.
All pre-revenue biotechs need to fund themselves somehow. Leo chose to dilute the stock on a need basis, as evident by the increasing outstanding shares after each quarter. If the company's market cap stays the same and its total OS increases, the SP has to decrease. We all know that Mako damaged the stock greatly so Leo is forced to sell more shares to Aspire than he would like. The market is valuing IPIX at $100M right now. Before the 10-K it was $0.76 with 131.38M OS. Now it's $0.725 with 137.87M OS.
It's easy to blame naked shorting during the down time of REGN, PCYC & JAZZ, I'm sure one can post their old FINRA short volume data and claim the same thing, but their chart patterns were expected for pre-revenue biotechs. They need to dilute to survive. The market is result-oriented. They usually don't give a fair valulation until a company starts generating revenues. Leo has done an excellent job in moving the pipeline and I believe it'll lead to a partnership soon. Once IPIX starts generating revenues, the market will give it a fair valuation. Before then, IPIX has to go through the same growing pains just like everyone else.
All pre-revenue biotechs need to fund themselves somehow. Leo chose to dilute the stock on a need basis, as evident by the increasing outstanding shares after each quarter. If the company's market cap stays the same and its total OS increases, the SP has to decrease. We all know that Mako damaged the stock greatly so Leo is forced to sell more shares to Aspire than he would like. The market is valuing IPIX at $100M right now. Before the 10-K it was $0.76 with 131.38M OS. Now it's $0.725 with 137.87M OS.
It's easy to blame naked shorting during the down time of REGN, PCYC & JAZZ, I'm sure one can post their old FINRA short volume data and claim the same thing, but their chart patterns were expected for pre-revenue biotechs. They need to dilute to survive. The market is result-oriented. They usually don't give a fair valulation until a company starts generating revenues. Leo has done an excellent job in moving the pipeline and I believe it'll lead to a partnership soon. Once IPIX starts generating revenues, the market will give it a fair valuation. Before then, IPIX has to go through the same growing pains just like everyone else.
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I would love to read your explanation for the way this stock has traded over the past two years.
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