Why Ampio Cannot Achieve Market Valuations for Another Year or More
Ampio management has been dead set against dealing with big name bankers and has relied solely on unknown entities like Fordham and Aegis that have cost their shareholders hundreds of millions of dollars because they are an unknown and very few investors will act on their recommendations. For example, Aegis issued a 41 page report almost 6 months ago with a price target of $11. The stock dropped immediately on that report and has done nothing since in spite of all the amazing progress the company's pipeline has made.
Ampio can never achieve maximum valuations without having a big name banker on board. We live in highly risk averse times and for every investor who will invest in Ampio, there are hundreds who will not. Most investors are simply not going to take a position in ANY company without the comfort of having a big and well known bankers name behind it.
i've been in this business since 1967 and that has always been true and today it is even more important.
Yes ampio may go up on good news, but the not nearly as much as it would have risen if investors saw that it was endorsed by a big name they trust. Share prices will also give up most of their gain easily be cause it is too easy for the short interests to manipulate the price down again. The volume is so low because of lack of investors that small hedge funds can keep a lid on it with very little money.
Macaluso is passively sitting back and expecting Fordham and Aegis to bring in the investors but that wil NEVER happen. They are unknown and have almost zero following. Bankers like this will even give the company a seedy reputation.
The best thing management could do is pay the big dilution to a big banker and finally get this stock up where it belongs so that everyone will prosper and the company will have much larger capital access and valuations.
Avoiding big dilution charge by big bankers is penny wise and pound foolish!
My concern for Ampio has nothing to do with raising money.
My concern is that its shares are grossly undervalued and under traded simply because there is no major investment banker that endorses Ampio.
Without an endorsement from a BIG WELL-KNOWN BANKER Ampio ABSOLUTELY and DEFINITELY cannot achieve fair market valuations.
Such an endorsement can only come if and when management decides to work with a big banker or until after the FDA has fully approved one of its drugs and it is proven that they can market it successfully. That could be a long time and in the meanwhile all the upcoming good news is not going to have near the impact on the stock that it would have if it was supported by a big banker that would then make it possible for millions of individual investors and thousands of institutional investors to invest rather than the paltry few brought by Fordham and Aegis. This is a short sellers paradise!!!!!!!
Management has done a great job of advancing their pipeline in record time and for record low cost and hopefully they will wake up and realize they have made a very, very costly mistake with Fordham and Aegis.
I know a top underwriter at UBS who would love Ampio but Ampio would rather not pay their fees in warrants etc and would prefer to stay with Fordham and Aegis. Too bad for AMPE shareholders
Hopefully, management will wake up and finally get out of the ditch.
I think Macaluso is trying hard NOT to dilute current shareholders, of which he, I believe, is the largest. It's hard to argue for dilution, as you are doing. He(Macaluso) wants the share price to go higher as much or more than anyone. If they don't require the funds in the near term, I don't see the point in seeking a large Wall Street firm to conduct a Secondary. Hopefully they get upfront cash on a hopeful Zertane licensing deal, which would negate any need for a Secondary. If things progress as they have been, the share price will eventually work itself higher, and will most likely skyrocket if they have positive preliminary results for Optina.
I do feel the company needs to do a roadshow to get in front of potential institutional investors, something they sorely lack & need to support the stock.
When you realize how much shareholder value has been lost because of the company not being willing to pay large bankers their large fees, it has been a huge mistake to not dilute because their net value would be several multiples higher than it is today.
True, shares will rocket on good news but they will again fall back into the doldrums where they are easy prey for hedge fund short interests. Plus, they will not go near as high as they would have if a major banker was endorsing the company. That would open the floodgates to unlimited investment in the company.
Roadshows don't do any good except for the company's putting them on.
Again, very little investment will be made in this company until they bring a major banker on board or until they actually have a full blown FDA approval under their belt and that is well over a year away.
This is so obvious it is frustrating to stand by and watch this company waste shareholder valuations that could be so much higher than they are today. Management has cost its shareholders (including themselves) hundreds of millions of dollars in lost appreciation.