I continue to maintain that this has 10+ bagger potential long term. For those concerned about short term price I offer the following
1. Markets are inefficient especially for small caps. Those arguing higher price are arguing growth which is only beginning. The small cap markets have a "show me" attitude.
2. Lack of coverage. Small caps that are more efficient often have analyst coverage, often as a result of an investment banking arrangement brought about by need for cash
3. Balance sheet along with losses raises issue of possible secondary. Company alluded to that during CC but only under the right circumstances. Managing this issue is critical In some instances investment banks and hedgies try to drive price down. In other instances good news is used to create price rise (remember that of a few years ago) so that new shares can be issued at high prices with minimal dilution.
PhDs are fine for product development but not needed for manufacturing. i dont think we are being played. i do think we may be in first inning of prolonged growth phase. we will only know this in retrospect. and i think company has 10+ bagger potential - but over years, well beyond the timeframe of investors who want instant gratification.
Similarity: both in early 70's
Differences: Duggan - energy level and mindset of someone in 40s. Stoll - attributes are of someone in 70s.
Duggan - entrepreneur, mover and shaker, dealmaker. has a lot of skin in game. Put $13M into PCYC when it was $1.30 and in P2.. Arranged partnership with upfront payments and milestone incentives so that P3 was cash flow positive! Ultmately turned $13M into over $2 B in a few years.
Stoll (and rest of BoD) - very little skin in game. Energy level of retirement community. Comfortable with status quo. Dealmaking ability of an inanimate object. Afraid or impotent to make things happen.
most likely. its a quesiton of going from underutilization to full utilization of manufacturing manpower, then employing overtime, then hiring. most production facilities that operate only one shift 5 days a week, can triple output by going to 3 shifts and quadruple output by going to 3 shifts and weekend work.
While skepticism of company performance is justified it is overdone. Specifically
1. Cost controls - company has done exceptional job
2. Sales have stabilized albeit at rock bottom levels
3. Growth - TBD. Thus far it has not occured. Let's see what the future holds
4. Innovation - Jones stripped and some novelty season flavors and marketing. Some posts bash JC and the company on this area and imply innovation is dead. I love this "wall of worry" which is misguided imo (although I can see the logic of those arriving at this conclusion) and leaves enormous room for upside surprise. Stay tuned.
give the company time, including mills. medical professionals explaining and demoing system is way to go.
look for sales to ramp up over time. has 10x or more potential - but over time