Is a 2.5 billion dollar market cap justified at this stage?
I've been looking into this company and I'm liking what I'm seeing. However I am obviously late to the party and wondering if this high market cap is justified at this stage. Are there any other companies that have reached this type of valuation in phase II/ beginning of phase III studies? Also with only one product in the pipeline seems like the risk is very high. AFFYMAX is a good example of what can happen. Anyway do we see a big correction or just keep climbing?
They have 95.6M in cash and an operating cash flow of -66.3M. They have pumped the stock to get a better price per share on the comingin share offering to raise cash, also when the price drops after the dilutiion it will fall back in line where the price was a month ago. They have a ways to go and will need cash, and these companies take advantage of good news an an opportunity to do so. I will cover my short at 48.00.