Hi everyone, Unfortunately, we risk having a second big crash, as the next phase of Insovency takes shape (after the first easy one of liquidity). I believe we are all better off not having any long positions on risky assets untill the storm subsides. I sold all my shares. I recommend you do the same regardless of your losses. When the time will come there will be huge upside opportunities in all these gems. You'll have ample chances to recoup all your losses and then some much more.
[There is a huge growing market in their own back yard.]
I agree with you 100% with this statement. China healthcare will be huge to 2020 and beyond.
[ LTUS is not looking to export its medicines.]
But with their top 3 new drugs, they could easily go for a CE Mark for Europe. The 3 new drugs can represent profit margins of up to 70%. So with that said, the CE Mark is easier to obtain than FDA approval.
I really don't care if Lotus would take this approach or not. All I'm saying is they could if they really wanted to. But, like you stated, China alone will be huge for Lotus.
I agree 100%.
It's ironic that one of the reasons I hold LTUS is as a hedge against the mess that is the Western hemisphere.
As China develops, 20th century health care for all of it's people is a top priority. LTUS is not looking to export its medicines. There is a huge growing market in their own back yard.
On a side note, the Shanghai market is also crashing so this price action may be related to that.
on more food for thought - what has China's pharmaceutical industry got to do with Europe, or the US for that matter?
there is an old saying "what does the price of tea in china have to do with it"... just look at the fundamentals of the company and its industry and if you think they are related to the Euro mess than by all means sell....
you have to remember that the stock is down on $130k in value traded.. seriously, give me a break.... these are peanut investors/traders.
Smart guys are accumulating from these small fries. I wish I had more to funds buy. All my stocks, with pretty amazing news, are taking a beating - ala GREEK style :)
Again, for more insight I would STRONGLY recommend that you contact the company as it is surprisingly responsive and from what I can tell is not out there to screw the shareholder :)
The market has more room to go lower so I can expect anything - rationality will return - in the meantime algos and short term traders are having a field day with mom and pops jumping ship for no real reason other then overblown media frenzy... :)
I agree it is not the case. The 10Q clearly shows LTUS's financial obligations for 2010 thru 2014. Just over 6 million this year, 11 million next year and 40 million in years 3 thru 5.
LTUS's cash flow was 31 million last year and increasing. They should start throwing off cash soon and shore up their balance sheet which on first glance in precarious looking. (current account less than 1 since they paid off their Beijing complex last qtr.
The valuations today a crazy-stupid and are a result of desperation vs. fundamentals.
[Once the Mongolia project is initiated (it might go down since that will need cash) and the asthma drug is approved]
I liked your post. But one thing you must also consider is STRONGER cash flows from the new Beijing complex. Plus, there are 2 billion dollar drugs coming out before Laevo-Bambuterol. Type 2 diabetes and Cardiovascular-CAD are not sneeze at markets. This will mean a very nice increase in cash flows out of Beijing.
Many investors here are looking at $60MM more in financing for the Inner Mongolia complex completion. Their ASSUMING alot of dilution will take place. This IS NOT the case! It's NOT the case at all. It's an ASSUMPTION, and that assumption is wrong.