Imagine, even an insider writes a glowing analysis on a new application of a yet proven drug, and no response from the market. Seems the market has out guessed the Flavins. Seems to me, this article may be an act of desperation. Why bring this out now? What all are waiting for is the partnership announcement. This article could have waited until after the partnership announcement. Strange indeed.. I expect something is amiss..
The magnitude of reaction of a stock to news flow is a direct function of the number of real traders that have that ticker on their monitor. That again is a function of how management manages its relations with investors. This company has obviously managed their product development very well, but not their IR.
Cethromycin has tremendous commercial potential and therefore value, but realizing this value requires a different mindset and resources than what the company has. Obviously the Flavins don't get it, but I believe they are starting to realize that if nothing they do will move the stock, they have to sell the company rather than licensing it to someone else, since little value would be realized.
Well said biobuy! Nothing will maximize shareholder value if they continue to run it themselves. They need help! Announcing a partner will probably only open up about a quarter of the potential value.
Agreed 100%!! They need to sell the company because they have proven to everyone (and themselves) that they don't have what it takes to run a public company. They will face an uphill battle forever going forward with anything they try to do, so the only option to maximize shareholder value is to sell!
You hit the nail on the head. This stock is driven by almost 100% on speculation due to the failure of the company's management team to promote the company and Ceth. We have nothing to go on except speculation. I believe the Flavins' are very good scientists, but not so great businessmen. They should have hired someone to handle the Ceth partnership.
Let's face it, all of the facts point to a positive deal for Ceth. The data is great, the drug is safe, and it has lots more potential than just treating CAP. Let's hope that the Flavins' can parley the above into a nice deal for the company and shareholders. Obviously, there is interest in the drug. We've been told there are six interested parties. Now it comes down to negotiations and execution.
The 3rd quarter starts next week. I believe July will be a good month for the stock. Investors and traders will start to buy in anticipation of a deal. In addition, biotechs are becoming somewhat of a safe haven in the current market environment. There are not many sectors where you can hide from the bloodbath in the current market.
No matter what they do...share, not share developments...somefind fault.
This is far more important than a few may realize, and shouldn't be met with the usual suspicious second-guessing.
When a stock doesn't trade a zillion shares with such news...
most never know abou it. Just the few who own it, want to own it, or those in the industry who will read that article.
I'm glad that this is not a daytrader's toy...
and very content to wait and see what happens here.
This kind of information will eventually get out to those who matter, and...will only add to the future potential value seen by intelligent investors.
I'd hate to be out of it...that, to me, would be the
dumbest decision one could make in investing.
Relax and go with the flow!
i don't know that the article could of waited but perhaps it could have come out sooner as it was published June 10th. They may have have felt the pressure of the no doubt endless shareholders phonecalls/demands for some kind of scrap off the table. Time is indeed running out. Deliver a partnership announcement on or before the August 15 10Q or sacrifice another half of their market cap. Maybe analogous to the housing crisis, the Flavins are still not ready to accept the fact that the market environs are not going to pay them the winfall that they would have 3 years ago. they may be getting lowball offers and are reluctant to accept them. If they are truly stubborn and totally disregard the share price they can hold out until the end of the year. This move would be a truly all or nothing gambit for them, unlikely being they hold 9 million shares but possible nonetheless