Hotwolf I’m only trying to provide a balanced view.
I have a background in valuing companies as it was my actual profession. Additionally I've probably read the same and somewhat academic articles on how biotechs could be valued as you. Irrespective of this, what point I’m trying to make and see as counting here is simply what PSD can sell their intellectual property for and/or whether they can create a reoccurring revenue from their existing product stream. Put simply anyone willing to pay $100M today will need to be very confident of not only recovering their capital but justifying the opportunity cost. Do your sums and you'll see an intrinsic risk given the uncertainity of anything decent coming through.
Anyone who has been in the company for a while is really just trying to recover their losses. Not really an ideal strategy of a successful LT trader given they should have been out a while ago (60c or around $300M cap).
Irrespectiv e note my ST BUY position which is based on:
- the amount of interest it has from traders
- possible good news coming through of a decent deal being signed.
Good luck to holders who have recently seen the momentum change in the right direction.
PSD
psivida limited
