Let me preface by saying I wouldn't touch NNVC sto
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Posted On: 04/09/2018 7:29:54 PM
Let me preface by saying I wouldn't touch NNVC stock with a 10-foot pole and I think IPIX has immeasurably better management and an infinitely better pipeline. There are a couple considerations with your comparison though.
The first is that NNVC is on the NYSE rather than the OTC. People underestimate this but it is a factor. Institutions as a rule do not invest in OTC companies. Many high worth investors also do avoid OTC for the same reasons.
The second is that NNVC, until recently had a better cash position. That cash position has dwindled greatly over the past three years and the stock price is being punished heavily for it. Here's a ballpark from their filing:
June 2014:$36.6M ($4/share)
June 2015:$31.4M ($2/share)
June 2016:$24.1M ($1.75/share)
June 2017:$15.1M ($1.20/share)
Sept 2017:$12M ($1.15/share)
Mar 2018:? ($0.83/share)
I would expect NNVC to drop quickly as their cash is depleted into the low-mid seven-figures range where IPIX resides.
Not raising cash when the stock was trucking along into the $3s and $4s was the biggest mistake made by the IPIX team. Why raise cash at $3 when we will be $10 soon? We all would have screamed bloody murder at the time. An extra $15-20M in the bank would have greatly deterred the impact of Mako/Rosen and there would have been less pressure from Aspire the past couple years. Leo's efficiency is a double-edge sword. We didn't see the hit coming, we didn't expect no uplisting, we didn't expect funded trials to fall through, and we didn't expect the huge stock price decline. We put off fund raising thinking it was blue skies ahead. It's a textbook case of why OTC bio companies MUST raise cash when their star is rising. Cash-on-hand is so important.
The same goes for uplisting. Have the requirements you can control squared away and be ready to uplist as soon as you meet the ones you can't control.
I expect the IPIX team has learned from this and will be more liberal with the fund raising and uplisting this time around.
The B-OM news today makes me even more confident we will get a deal on it. This is going to bring relief to the balance sheet and set us on the right path. The science is the goods in the cart. The balance sheet is what pulls the cart. We'll be trading in our Donkey for a pair of Clydesdales as soon as we get our deal.
The first is that NNVC is on the NYSE rather than the OTC. People underestimate this but it is a factor. Institutions as a rule do not invest in OTC companies. Many high worth investors also do avoid OTC for the same reasons.
The second is that NNVC, until recently had a better cash position. That cash position has dwindled greatly over the past three years and the stock price is being punished heavily for it. Here's a ballpark from their filing:
June 2014:$36.6M ($4/share)
June 2015:$31.4M ($2/share)
June 2016:$24.1M ($1.75/share)
June 2017:$15.1M ($1.20/share)
Sept 2017:$12M ($1.15/share)
Mar 2018:? ($0.83/share)
I would expect NNVC to drop quickly as their cash is depleted into the low-mid seven-figures range where IPIX resides.
Not raising cash when the stock was trucking along into the $3s and $4s was the biggest mistake made by the IPIX team. Why raise cash at $3 when we will be $10 soon? We all would have screamed bloody murder at the time. An extra $15-20M in the bank would have greatly deterred the impact of Mako/Rosen and there would have been less pressure from Aspire the past couple years. Leo's efficiency is a double-edge sword. We didn't see the hit coming, we didn't expect no uplisting, we didn't expect funded trials to fall through, and we didn't expect the huge stock price decline. We put off fund raising thinking it was blue skies ahead. It's a textbook case of why OTC bio companies MUST raise cash when their star is rising. Cash-on-hand is so important.
The same goes for uplisting. Have the requirements you can control squared away and be ready to uplist as soon as you meet the ones you can't control.
I expect the IPIX team has learned from this and will be more liberal with the fund raising and uplisting this time around.
The B-OM news today makes me even more confident we will get a deal on it. This is going to bring relief to the balance sheet and set us on the right path. The science is the goods in the cart. The balance sheet is what pulls the cart. We'll be trading in our Donkey for a pair of Clydesdales as soon as we get our deal.
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(1)Innovation Pharmaceuticals Inc (IPIX) Stock Research Links
The Ghost of Phteven. All posts my opinion and speculation only.
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