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Inovio Pharmaceuticals, Inc. Message Board

  • markbuti markbuti May 26, 2014 1:29 PM Flag

    Perspective: Inovio's Valuation @ $2.00 pps

    Upon Friday's (manufactured) $2 close,.. Inovio was "theoretically" valued at $481M. I say "theoretically" because the current market cap represents a **significant** amount of shorting. Most large holders of Inovio stock would *never* sell their holdings at $2,... nor would they sell it at $3 a share. I'm only a retail owner,.. but I for one would never sell at $2 a share,.. nor would I sell for $3....

    In terms of paradigm, what would a company like Inovio would be valued at if it had been a privately held via venture capitalists,.. and was just doing an IPO? With the right IPO underwriters & marketing,.. with Inovio's leadership in synthetic DNA vaccines, broad pipeline, significant IP patent estate, partnerships, pending PHII results, $100M+ cash etc... Inovio would expectedly raise $750M in an IPO. My conclusion is that at $481M, Inovio is significantly underpriced, and represents a buying opportunity ("thanks" to the R/S announcement and the significant shorting).

    Although the conventional explanation of the shorting is that it's mostly a combination of hedgefunds, daytraders, etc. pushing down the price hoping to cover and make a buck,.. I'm thinking that it may actually be certain institutions with significant number of shares wanting to *increase* their positions by shorting against their equity stakes (which provide insurance to the upside). Adding in the increased opportunity that they may have acquired call options at cut-rate prices when the bottom dropped out,.... institutions with large positions can, via the shorting process,.. increase their holdings. Warrants also factor into the equation as well.

    The main point is the price you see advertised on the closing bid on Friday is *NOT* the prevailing price that the majority of shares would ever change hands... it's manipulated! There is a significant game of charades being played... unfortunately many people are playing right into the schemes!

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