At first glance, this seemed to be okay or good news. However, the market seemed to greet it with a yawn because trading volume was very low.
* "eligible to receive up to $66M" – this is old news
* “presentation tomorrow and Friday at the European Congress of Obesity” – that presentation has nothing to do with the milestone payment and the program with Bristol-Myers Squibb.
* “trading below book...turnaround in place IMHO.” – yes, various opinions help make a market. One party sells and another buys. IMHO this news does not signal the start of a turnaround. It is nice news and it is always good to see nice news instead of bad news. However, this whole program has a long way to go before the goal of possible FDA approval.
As far as trading below Book Value is concerned, that is a matter of perspective. Investors look at how management is managing those assets. Because AMRI management has shot itself in the foot on numerous occasions, the market might not be confident in what is viewed as Book Value. Management can burn through that Book Value and have nothing to show for it.
Perhaps this situation boils down to whether we might see a Dead Cat Bounce or a legitimate sustained rebound that lasts for more than 10 weeks. Today might have been a good day to buy. Any thoughts from other participants on the board?
Thanks for your insight stk_hnter...to be honest I thought you were going to blast me. Your last few posts have been negative and rightfully so...the fact that the presentation has nothing to do with BMY is a positive in that it just maybe another catalyst to move this stock higher. True there was little volume today but pps has been moving up lately so maybe the news was baked in. True management has shot itself in the foot on many occasions. That is why we are at $5 vs $15. The milestone payment will make next quarter positive and that will be a start...volume will come and all of a sudden we will turn from a value stock to momentum driven stock.
Yes, I have had numerous negative posts and rightfully so . . . However, you made some good points and they were logical. You made a good case for your view. Therefore, there was no reason to blast you unless I am totally obnoxious or irrational. There is potential for AMRI right now. That’s why I think I have to wait and see if this is a Dead Cat Bounce or a legitimate sustained rebound.
The milestone payment might help the next quarter look better, but professional investors will have already factored that into the stock price by the time of the next release.