Bruce, I'm not posting it as much to get an upd
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Posted On: 04/24/2018 1:51:37 AM
Bruce,
I'm not posting it as much to get an update on that trial as to encourage them to put the other trials they're doing on the database. Much of what they're saying is true of most biotechs, they rarely discuss Phase 1 unless they're presented at a major conference, more is discussed in Phase 2, but the big difference is they do put their Phase 1, 2 and 3 Trials in the clinical trials database, and that's what I'm pushing for. Just the information shown in clinical trials answers most of the questions about the trial. Most companies do maintain the database as well, though often not as frequently as investors might like.
The other thing most biotechs do is speak to investors and analysts at the release of every quarterly and annual report. They answer questions, but sometimes the answer is that they cannot speak about certain things at this time. I believe our price is dramatically lower than if they just had a webcast four times a year that spoke with investors, and permitted analysts to ask questions.
I don't know that we'd be at $1 or more, but the only way such presentations wouldn't help is if they couldn't back up what they were telling us with some specifics. Things like, what do they mean by market ready, it should be easy to define it, but without definition from them, the question just keeps being asked.
Long term, i.e. a few years from now, none of this will matter except in one way, what percentage of the shares we own. Dilution is a fact of life in biotechs building a pipeline and product sales, the market cap after success will essentially be based on earnings at some point. The reason it matters as to the price now is that now they'd need to issue over 4 million shares to bring in a million dollars. With higher prices, clearly less dilution will be needed to bring in the necessary funds.
I realize they may be bringing in substantial funding from new partners, but once again, some may want an equity position, and at these prices they'll get a lot more shares for their money. We'll all do well when the market cap is in the billions, but on a percentage basis we could own more of the company if when they diluted they did so at substantially higher prices.
Gary
I'm not posting it as much to get an update on that trial as to encourage them to put the other trials they're doing on the database. Much of what they're saying is true of most biotechs, they rarely discuss Phase 1 unless they're presented at a major conference, more is discussed in Phase 2, but the big difference is they do put their Phase 1, 2 and 3 Trials in the clinical trials database, and that's what I'm pushing for. Just the information shown in clinical trials answers most of the questions about the trial. Most companies do maintain the database as well, though often not as frequently as investors might like.
The other thing most biotechs do is speak to investors and analysts at the release of every quarterly and annual report. They answer questions, but sometimes the answer is that they cannot speak about certain things at this time. I believe our price is dramatically lower than if they just had a webcast four times a year that spoke with investors, and permitted analysts to ask questions.
I don't know that we'd be at $1 or more, but the only way such presentations wouldn't help is if they couldn't back up what they were telling us with some specifics. Things like, what do they mean by market ready, it should be easy to define it, but without definition from them, the question just keeps being asked.
Long term, i.e. a few years from now, none of this will matter except in one way, what percentage of the shares we own. Dilution is a fact of life in biotechs building a pipeline and product sales, the market cap after success will essentially be based on earnings at some point. The reason it matters as to the price now is that now they'd need to issue over 4 million shares to bring in a million dollars. With higher prices, clearly less dilution will be needed to bring in the necessary funds.
I realize they may be bringing in substantial funding from new partners, but once again, some may want an equity position, and at these prices they'll get a lot more shares for their money. We'll all do well when the market cap is in the billions, but on a percentage basis we could own more of the company if when they diluted they did so at substantially higher prices.
Gary
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