re: Ann: Institutions Agree to Acquire REVA S...
No, DS, not the lucky comment, I genuinely misinterpreted your post as saying they got for 50 cents what is now $6.35. With hindsight, quite how I thought that seems a little stupid! I know you've been holding for months, as I've been following Reva since it listed. I feel for you. It's a sick feeling getting in early only to see decline. Been there done that more times than I care to think about.
That's why I'm trying to time my entry a little better this time, not the same as trying to pick the bottom, which is a mug's game.
To be fair, having recently posted that it might drop below 50 cents, only to see this trade go through and the price spike to 67, I thought I had mis-timed it again on the wrong side of the ledger.
My reason for thinking it might go a little lower is that even though they've got plenty cash on hand, (which I was interested to see in one of the recent presentations they said was sufficient to see them through to CE Mark and Euopean commercialisation), this market is very unforgiving of pre-revenue biotechs with a healthy premium built into the SP. Pre-revenue anything, for that matter. And unlike days gone by, it doesn't seem willing to attribute much value for IP pre-approval/commerialisation, no matter how big the potential market.
But that creates opportunity.
And no, there's nothing to stop the new holders selling back into the market unless they came to an agreement to hold the shares in escrow for a fixed period. Buying at 50 cents and selling north of 60 is good short term money in this environment, especially with the amounts involved.
All that said, I really like medical device companies, and believe Reva could be a standout performer in its class.
Again, good luck.
RVA Price at posting:
63.5¢ Sentiment: LT Buy Disclosure: Not Held
