Prior to any talk of MBP involvement in PolynNovo, Exceed Capital derived about $13 million market capitalization from its 60 percent of PolyNovo. Metabolic ought to derive at least this value and more since it is capable of funding current product development to maturity. In addition Metabolic has at least $9 million cash which needs to be factored into the valuation.
Without any additional enhancements or credits for any carryover Metabolic projects, investors have reason to expect a minimum market cap of $22 million or about a bit more than 7 cents a share in the very short term.
In fact I think this valuation underestimates the real potential that can be realized by PolyNovo in the next two years. If the market can recognise the present value of this potential, the market valuation ought to be closer to $32 million, or just under 11 cents a share in the near-middle term.
This actually comports with a technical analysis that looks to indicate a major resistance at around 12 cents a share. That's where I think we're headed over the next two to three months.
Personally I am continuing to add to my holding at present prices, although not as aggressively as in the past few months.
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