PAR and the levels of research

Finally my eldest son is starting to take some sort of basic semblance of interest in PAR.

I've bought some shares for him and he is starting to ask me about it.

We then got on to the topic of research generally, I explained it like this:



THE MOZZ LEVELS OF RESEARCH


LEVEL 0

More punt than actual conviction. More guesswork than anything, this is research level zero....think of this as the dart board and a small wad of cash...may work out...may also not work out.


LEVEL 1

This level is where you do basic search, find out a little about the company you are about to invest in...perhaps even read the first high level broker report you stumble across.


LEVEL 2

Ok now we start to scratch just under the surface...I'm talking doing some good research work on the internet, reading most if not all broker reports, start to do some comparative research...what's the competition like? What exactly is the company doing and how are the moats shaping up? Does it tick at least some of the good company boxes?


LEVEL 3

At least for PAR, Level 3 is more serious again...now Im talking to customers...clients...patients...people that have tried the product. Yes I want to know more, I'm starting to consider some serious dollars on the line at this stage, but before I commit, I want to go beyond the broker reports. A lot of brokers might have a hidden agenda or a vested interest. nah I want more. I not only want to hear it from some patients, but I want a broader class of patient, yes I want to also hear from patients where it DIDN'T work! Why?

Well I want to know downsides, disadvantages... I also want to hear about negatives and possible potholes on the road to potential success.


_{Less this road...more the glistening brand new freeway!}



LEVEL 4

The ultimate in research. At this level it requires a whole new level of research...going beyond what most people, even most investors could really be bothered doing. Yeah I mean talking to the company...I mean getting into the raw science...learning in depth like what they'd cover at university...

I gave the car example to my son. I told him that if you are truly passionate about something, you will explore like no other...it's not just buying a nice car....it's finding out about it from the ground up...how does the engine compare with the competition, what will last longer...what makes it unique...are you getting your money's worth? What are the benefits and the disadvantages too?

It's at this level that research is not just conducted in a few days, nah, I'm talking ONGOING research....always keeping an eye out, checking, re-checking and projecting, ever watchful, for it is this hard work that will keep us safer ... yes it also means listening to those with negative opinions, listening to those that are grounded and are independent and hearing from those that question and ask "What can go wrong"?

Level 4 is about contacts and casting a much broader net...yes large commercial nets are expensive, not just in terms of money for materials...but in terms of time....it's a dedication...but as they say...if you enjoy it, it's less work and more fun!



_{Larger nets bring in more fish? Broader research brings in better understanding and knowledge.}


Yeah at this stage I want to really be talking to all sorts of people...

• Researchers
• Analysts
• Brokers both small boutique ones to the more popular larger ones
• Doctors, not just GPs but Rheumatologists and even Anesthetists
• Patients - both successful stories and not so efficacious examples
• Scientists
• Para medical too like Chiropractors and even Vets.

Competition? I want to study them too...what is out there, what if I had OA....what are the alternatives...what is looming?

Moats....Do we have a good stable and deep/wide moat around us? How do we fare in terms of other potential hurdles that a lot of start up's can face?



QUESTIONS/COMMENTS?

I asked my son if he had any questions, he asked me about companies just issuing shares at random and to no limit, I answered by touching on the whole dilutionary effect phenomena.

He was also amazed to hear that a full 10% of the adult population has some form of OA. It was great hearing him ask this and seeing his reaction to the answer. It really was a fairly independent source of thinking and he is young, 19, and has never really shown an interest in shares before despite me trying to broach the subject on a few earlier occasions.... It's this age group that potentially will reap the real benefit of such a company like PAR longer term, especially if it does turn out to be the next CSL (umm Edski [Happy Independence day!], maybe the USA equivalent is Regeneron).





_{Regeneron (REGN), involved with many indications and has multiple collaborations...in the above time frame went from around $14 in 2009 to a massive $583 per share now, current market cap? A lazy $62 Billion USD...}



Yeah they do say it's time in the market not so much timing of the market, a longer time can certainly help...and it seems to be very true in the case of Bio Pharma plays.



CURRENT STAGE

Yes we have a lot riding on the opening of the IND for OA. But it's also some consolation that we have Europe already accepting us at this level and a few other indications brewing along nicely. Ongoing research and constant talking to others is something I'm dedicated to and it really isn't a chore to do.

More to come in terms of research, especially when I'm back at it in full force in a couple of weeks time.



Hang in there.


DYOR