A friend of mine called me and he recommended CASI. I know my friend is connected to some other investors who are very sharp and alert on investments. I told him that you better buy SPPI which owns 20% of CASI and also SPPI CEO is a board member of CASI. After all, CASI shares are not liquid at this time while with SPPI you have more flexeblities.
For 2015, there is only one payment about $6 mil in contrast to what SPPI paid in 2014.
I think, SPPI already decided to slow down on spending and put money on projects that will generate cash in shorter time. SPPI will be cash flow positive in 2015 and it may increase its cash position while focusing on some important projects.
That will bring the subject of current debt and bondholders that are acting very negatively. SPPI may start to shave the debt or find another alternative to deal with it.
Only 2 weeks left from Q1 2015. Fusilev should generate over $30 million and Q1 rev should be between $50 to $55 m. In addition, Q1 should be positive non-gap and positive cash flow based on what we saw in Q4 2014.
In December 2011, I bought PCYC at $12 and then at $15 in Jan 2012. I sold it when it reached my target price around $50 but I kept a small amount of shares.
Recently, ABBV has acquired PCYC for $21B at $261 per share. PCYC has only one cancer drug that has been approved recently. May be I can try my chance again with SPPI.
Imagine SPPI with zero rev and without any drug excerpt SPI-2012 in phase III. With those conditions, the company worth over $1B and over $15 per share. You do the math when other conditions are added.
If one or two analysts do not understand the potential of the drug and all the drugs in PCYC pipeline, it is their problem. Some idiots were saying the same thing when GILD bought its HEP C drug.
Analysts are focusing on one drug but ignoring the PCYC pipeline, more indication of the drug and the most important, the intellectual property that ABBV will get. They will create much more blockbusters.