I currently have a small stake in SCLN and am looking to increase it, but I need some help from someone with more experience in biotech stocks than me. Can someone tell me how SCLN's current valuation compares to other biotechs with similar future prospects? It appears from reading other messages on this board that SCLN is undervalued based on future revenue potential. I guess what I'm asking is what is a fair price for SCLN currently and what is fair when they turn a profit later this year (as compared to similar biotechs)? Thank you.
All small biotechs like SCLN are great unknowns. Promising technology, but you never know what clinical trials will bring or whether competitors will have a superior product. I have been in SCLN since $2 and think it is a good speculative buy at its present price.
Other biotechs to consider in the $2 - $7 price range are: ARIA, ATIS IMGN, TRGA, BIOM, CYPB, XOMA. Other much riskier but cheaper plays are ALTN, ASTM, LORFF.
SCLN is very undervalued. Do I have a quantitatively estimated fair price or target price? No.
Uncertainties about Approvals, Competition, and other factors needed to calculate a risk adjusted PV of the company's future earnings, the timing of the earnings stream, etc. would require greater time and effort than I can spare.
My decision to be long this stock versus others is more subjective than that. Nonetheless it is my largest holding of a single equity, based upon my DD, risk tolerance, portfolio diversification, etc.
What do I think its worth? Right now, should be trading at $25.