I honestly cannot understand why anyone would invest in this dinosaur. A shrinking market, low-cost offshore competition, no upside value in their service work, and 10% of the only value in the company, the royalty stream from Allegra, flows directly into the pocket of the greedy CEO. Hold your nose and buy more!
<<<no upside value in their service work, and 10% of the only value in the company, the royalty stream from Allegra, flows directly into the pocket of the greedy CEO>>>
I agree with you 100% regarding the greedy bonus compensation.......we need more Elliot Spitzers to flush out this type of "rape the shareholders" wallstreet mindset. On the other hand this new contract is the first decent contract with significant future potential to be announced in quite awhile and I'm guessing we'll see one, perhaps two more like this one in 2005. ACL is a solid company, don't underestimate the potential here for future additional research contracts or even another royalty bonanza. The balance sheet is still strong, Allegra revs are still contributing, 2005 will be better than last year. My target is $14.50 by Christmas.
I wouldn't hold my breath on seeing royalties out of this contract any time soon. They're starting off by screening natural product libraries. Any product from this point in time is at least 8-10 years out.
Don't you find it curious that we never saw any additional royalty streams from all the contracts AMRI had over the years? The Allegra royalty was purely accidental, and is highly unlikely to ever happen again. Resign yourselves to the fact that the only profits this company will ever see, once the Allegra royalty evaporates, is the meager profits they can squeeze out of contract research. And those in the face of low-cost competition from emerging economies! This is a horrible stock to hold.