agreed, except I think fundamentals will turn the price around somewhere in the future. Maybe a few more quarters to go.
Rule #1 about the stock market: It will always do the opposite of what you think it will.
Rule #2: Just when you think you got it figured out, you don't.
Bad news always causes selling that goes way overboard with these micro cap biotechnology companies. Once the reaction to the recent changes has subsided, the stock price will stabilize. If the company has any future, the market come back in buying again. At least that is what I hope, considering I have a long position here and am deeply underwater,
I think you are responding to a different news item than the one dmurphy is discussing -- even if you agree on the performance of KB.
To be honest, over the past few weeks, I have begun to diversify a little out of CGEN. The vague future has just been extending on too long for me, and I am going into some other immuno-oncology bitoechs that have at least some phase II and trials in the works. The catalyst was my brokerage cutting off all margin funds for CGEN, just before the recent drop began. Someone in their research department saw the fall coming, and it was clearly more than due to just end of year tax loss selling. My largest position by far still remains CGEN, but the lack of communication lately, other than by informed and helpful posters on this board, has led me to do the practical thing.
We recently have had a conversation about the need for better PR, and I agree with that, although hiring a PR person is not the way to go. Anat and Martin should be able to handle the communication of the company's progress in a clear and succinct manner. We are not BMY after all, with hundreds of products to explain, and the few therapies we have should be presented to the public by top management. Where have they been?
Clearly, we are both on the same side of the fence regarding our hope this company and its science proves successful. Time will tell, and like you, I am hopeful that the final results will bring a major breakthrough in SCI treatment.
if I am reading andyalba63's comment right, he is not saying the news is bad, but neither do we have any reason to celebrate a "homerun" from what was said. I'll turn your question back to you and ask, if the news "means they have a homerun" then why is the stock down .041 cents and not up that much? As I've written in previous posts today, the press release suggests to me that the management is trying to make the best out of a bad situation, and they are being transparent and pro-active in their decision making. That is "good news" to most investors who care about the leadership management provides during the tough times. But the reality is, these are tough times. In that sense, I agree with you completely that the secondary is now baked into the future here, which no doubt accounts for some of today's drop.
But really, vinman2228, how can you say the SCI research outcome is even a known factor, much less a homerun? If the outcome were known, they wouldn't be doing research on it!
Agreed. It's a game of beat the clock at this point. The AMD research had to be dropped because of the recent trials, and superior competition from other companies. The SCI research also has a potential link to Chronic Traumatic Encephalopathy, CTE, which as you say certainly has the more sexy publicity these days.
SJS, I share your concerns (as a shareholder since 2004) about the delay in seeing any tangible rewards for our trust and patience. And I certainly agree that a buyout would be years away, and with more in our IP than we currently have. However, an article like the one SBH quotes (and his astute comments) seems to be just the kind of "PR" we have been discussing as necessary for the investment community to read in order to see our potential and increasing, unclaimed value.
Needless to say, I am still basing my investment here not on visible results but on the trust I have that the current management team has the ability to steer this company towards a real breakthrough in medical science, and with that breakthrough, our long-awaited financial recompense.
Whoever said "Patience is its own reward" obviously never invested in the stock market.
Your imaginary grandpa in the sky has nothing to do with the direction of this stock. The future success or failure of the company depends entirely on their research and its efficacy.
15 to 1 reverse split? Sorry, I've seen this scenario too many times. Unless we hear some new and significant announcements on the science/research front, we are doomed to suffer that indignity. I am eagerly awaiting any rebuttals to this post to prove me wrong.
...the lone voice in the wilderness cried out. :)
I wondered that too, elbit, and my first thought was that profstok was thinking about the other Canadian company called Compugen, which is an IT company. But he mentions biotech specifically, so it couldn't be that. I would have liked an answer to your question, too.
Nice post, sbh. And by "acquiring the whole company," I trust your optimism goes as high as ten to twenty times our current level.