What you're saying regards market cap, and that's
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Posted On: 05/26/2018 3:58:19 PM
Re: freedomdreamer #13292
What you're saying regards market cap, and that's really the way stocks should be judged. On a market cap basis, we're still more highly regarded than they are.
Many of the cannabis stocks I follow are trading in the penny and sub-penny range, and in most cases they have billions of shares outstanding. Personally I doubt most will reach $1 without a reverse split, but I'd be opposed to such action at this point. I would support a reverse split if the management built the stock price to somewhere in excess of a dime where to achieve a dollar a one for ten could be considered. What I don't want is a 100 to 1 or worse R/S being done, and no sooner is it done than they're issuing lots of new stock, and before you know it the O/S is back to where it was.
I frankly believe any of these companies have the potential of multi-billion dollar market caps. That said, having a billion shares outstanding would still give a share price over $1, and to me, that's not bad. I believe at over $1 it's possible to get a listing on the Amex, a step above the OTC. At that point, building to $4 where the Nasdaq is possible isn't out of the question, and that's without doing that R/S.
I do believe that if companies with multi-billions of shares outstanding do wish to go on major exchanges a R/S will be necessary, but as I indicated, I'd not support it until they move the share price up dramatically giving existing shareholders the belief that it's a move toward success. A company that's diluted it's shares down to the point it's selling for under a penny, or even under a tenth of a cent, has no credibility with investors if it proposes a R/S. Get the price up, then make such a proposal and I for one would support it.
As for OWCP, a billion dollar market cap for us still represents about a $7 share price, that to me says we can accept some further dilution, and still be well positioned for a future listing on the Nasdaq. They way that such dilution could be most valuable to us might be a buy in from perhaps a big Pharma who takes say a 30% position in the company. I don't see management taking such an offer at under a couple dollars, which immediately brings the stock price to that dollar figure. I suspect that such an offer could come once we have a few patent approvals, and perhaps a couple products in sale in cannabis stores. That could happen later this year, or beyond.
When I speak of the Nasdaq, I still believe the banking issues must be resolved before we or other cannabis based companies are accepted their. Of course it's very different if you're a cannabis based company but have drugs approved by the FDA, then you become a drug company that just happens to work with cannabis. Drug approval is probably at least 5 years away when it comes to the U.S. FDA, but I don't know that it cannot happen much sooner elsewhere.
I believe that even our FDA is changing and faster approvals may be within the realm of possibility. To me, if 100 people with considerable psoriasis were treated with our cream and 70% saw substantial benefits, that would convince me, especially if no one had unacceptable side effects. I'm not certain that in some countries less than 100 would convince the experts, but here in the U.S. if we were doing a Phase 3, I don't know that the FDA wouldn't want to see many hundreds, perhaps over 1000, in such a trial.
The other question in drug approvals is how long must the approval be viewed for. Some Govts. might be willing to make a judgement after seeing substantial improvement for a duration of a matter of months. I don't know that our FDA wouldn't want to see a year or more. All of these things suggest reasons why approval elsewhere may come years before we gain U.S. approval.
I believe that our market cap should be into the billion range at the time we have drug approval from any major country. I believe both Germany and Israel are places where it could happen first, but their may be others, including possibly Canada where our products should be available well before they have drug approvals along with all sorts of other products as Canada legalizes cannabis some time later this year.
While we're at the infancy of the cannabis market, not every company will survive. I believe we're taking a very professional approach at achieving success as a cannabis based biotech, but certainly other approaches may be successful as well. As most here know, I have a few different investments in cannabis based companies, and each is taking a different direction at the cannabis market. If only one or two of them are successful in a few years I will be quite successful, even if the others completely disappear.
Gary
Many of the cannabis stocks I follow are trading in the penny and sub-penny range, and in most cases they have billions of shares outstanding. Personally I doubt most will reach $1 without a reverse split, but I'd be opposed to such action at this point. I would support a reverse split if the management built the stock price to somewhere in excess of a dime where to achieve a dollar a one for ten could be considered. What I don't want is a 100 to 1 or worse R/S being done, and no sooner is it done than they're issuing lots of new stock, and before you know it the O/S is back to where it was.
I frankly believe any of these companies have the potential of multi-billion dollar market caps. That said, having a billion shares outstanding would still give a share price over $1, and to me, that's not bad. I believe at over $1 it's possible to get a listing on the Amex, a step above the OTC. At that point, building to $4 where the Nasdaq is possible isn't out of the question, and that's without doing that R/S.
I do believe that if companies with multi-billions of shares outstanding do wish to go on major exchanges a R/S will be necessary, but as I indicated, I'd not support it until they move the share price up dramatically giving existing shareholders the belief that it's a move toward success. A company that's diluted it's shares down to the point it's selling for under a penny, or even under a tenth of a cent, has no credibility with investors if it proposes a R/S. Get the price up, then make such a proposal and I for one would support it.
As for OWCP, a billion dollar market cap for us still represents about a $7 share price, that to me says we can accept some further dilution, and still be well positioned for a future listing on the Nasdaq. They way that such dilution could be most valuable to us might be a buy in from perhaps a big Pharma who takes say a 30% position in the company. I don't see management taking such an offer at under a couple dollars, which immediately brings the stock price to that dollar figure. I suspect that such an offer could come once we have a few patent approvals, and perhaps a couple products in sale in cannabis stores. That could happen later this year, or beyond.
When I speak of the Nasdaq, I still believe the banking issues must be resolved before we or other cannabis based companies are accepted their. Of course it's very different if you're a cannabis based company but have drugs approved by the FDA, then you become a drug company that just happens to work with cannabis. Drug approval is probably at least 5 years away when it comes to the U.S. FDA, but I don't know that it cannot happen much sooner elsewhere.
I believe that even our FDA is changing and faster approvals may be within the realm of possibility. To me, if 100 people with considerable psoriasis were treated with our cream and 70% saw substantial benefits, that would convince me, especially if no one had unacceptable side effects. I'm not certain that in some countries less than 100 would convince the experts, but here in the U.S. if we were doing a Phase 3, I don't know that the FDA wouldn't want to see many hundreds, perhaps over 1000, in such a trial.
The other question in drug approvals is how long must the approval be viewed for. Some Govts. might be willing to make a judgement after seeing substantial improvement for a duration of a matter of months. I don't know that our FDA wouldn't want to see a year or more. All of these things suggest reasons why approval elsewhere may come years before we gain U.S. approval.
I believe that our market cap should be into the billion range at the time we have drug approval from any major country. I believe both Germany and Israel are places where it could happen first, but their may be others, including possibly Canada where our products should be available well before they have drug approvals along with all sorts of other products as Canada legalizes cannabis some time later this year.
While we're at the infancy of the cannabis market, not every company will survive. I believe we're taking a very professional approach at achieving success as a cannabis based biotech, but certainly other approaches may be successful as well. As most here know, I have a few different investments in cannabis based companies, and each is taking a different direction at the cannabis market. If only one or two of them are successful in a few years I will be quite successful, even if the others completely disappear.
Gary
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(0)OWC Pharmaceutical Research Corp. (OWCP) Stock Research Links
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