Excellent post and a reminder to all that Biotech investing takes a huge amount of personal due-dillegence, a tremendous amount of patience, and a cast-iron stomach. If investors are truly longs, they realize all this and should feel comfortable with their investment. The 40M secured loan CYTR took out for commercial preparation a bit back further convinced me the confidence level is high for they could have simply diluted further.
PPS activity of late is the norm for a biotech company on the cusp of greatness. True longs aren't selling while shorts try taking it down further.Those investors not fully all-in here are getting their stop-losses taken out as the shorts walk this down as we near PH3 results.
I personally have a significant investment here, using profits from a previous Biotech company that's been in Cytr shoes before. Complete with the AF bashing, flash trades, fictitious firms writing negative articles - the whole package prior to its' success. One thing I learned from that experience, is to keep some cash on hand to take advantage of this late-game walk down in the PPS. I truly believe longs will be rewarded.
It's Deja Vu all over again for me and I'm not surprised by this either. I came to this board after investing a good portion of the well-into-six-figure profit I made on Avinar Pharmaceuticals back in early 2015.
Adam was a long-time basher of Avinar, frequently writing negative, well-timed articles that drove longs crazy and allowed shorts to have their heyday. He called Avinar's Alzheimer's agitation drug nothing but cough syrup ingredients and lambasted the company from PH2 all the way through production. Once positive PH3 results were announced in early fall of 2014, Avinar looked for a buyer, and they were sold with a closing date in Jan 2015.
Only after little 'ol Avinar showed up on all the investor boards as finishing #1 of the IBB stocks with a 454% price increase for 2015, did Adam come out with an article, basically eating crow - that he was wrong on this one.
So to all you long-term investors, if you believe in this company and have done your due-diligence, stick with it - buy more if you can on the dips, and enjoy the ride if in fact, PH3 results are not only positive, but viewed favorably to the big institutions. I for one believe crow will be served once again with this one.
Oppenheimer's Christopher Marai, stated and I quote "As noted, Phase 3 trial in second-line STS remains value driver, and the analyst anticipates, if approved, that aldox could be launched in 2017 and achieve peak sales of $800M in STS alone"
With 800M annually at 4x earnings, valuation would put the pps at about $48. Now wouldn't that be nice!
Times like this Shorts become our friends. PPS will certainly run up as they bail as we're seeing today. Would certainly like to see another player mentioned in the buyout news for that will make this very interesting.