Ann: End-Stage Heart Failure Trial Completes Enrollment, page-130

@tubbyguts ,

The problem with companies such as MSB, where it is impossible to determine an intrinsic value, is that there ends up being no fundamental valuation foundation or anchor for the company.

And the result is that the stock price ends up being at the mercy of the vagaries of short-term market sentiment. As can be witnesses by the pronounced volatility in the share price for several years.

And, unfortunately, because the company has been under-funded, and has needed to raise fresh equity capital at successively lower share prices each time, that sentiment-driven volatility in the share price has been occurring in a secular downward trend.

While the "sentiment-o-meter" is currently in the green again (the stock having just gone ex- capital raising), in the event that the company doesn't secure meaningful external funding, in six or so months' time the market will again start to price in another equity raising.

And my guess is that, in the absence of any major trial success, the next raising will have to be - again - at a lower price level than the last one.

Not good for long-term holders of the stock, but some people who are nimble enough, are able to make money by trading around the ebbs and flows in sentiment.