Ann: Mesoblast And Mallinckrodt Enter Into Agreement, page-82

Here is a better method and much more certainty than any ball - go on CommSec and generate a long term chart for CSL, then print it. Look for the line where there was a low $4.00 in June 2003. There was a double or triple bottom around there (chartists say that bull runs start from a 2X or 3X bottom and its very strong evidence based theory too). Now cut out a current MSB chart randomly say one year to the present. Paste the MSB chart with the Dec 16 time line carefully on the CSL chart at the June 2003 point. You will now "see" Meso's track to stardom picture perfect.


@antibody,

Nice though the theory is, you are making the naughty error of comparing an apple with an orange.

For at the time that CSL's share price was $4.00, the company was already recording Sales Revenue of some $1.7bn, EBITDA of $330m and Net Profit of $137m.

And on the critically-important subject of self-sustaining commercialisation, CSL was at the time generating Operating Cash Flow in excess of $200m, of which ~$90m was reinvested in the business in the form of capex and payment of intangibles (i.e. R&D).

Even after the payment of $35m for dividends, the company still generated surplus capital at the time of some $80m.

This is a quite different set of capital adequacy circumstances to where MSB finds itself today, I am sure you will agree.

But what your post does do is it serves to demonstrate why one can be afford to be patient when it comes to investing in conceptual, but under-funded, companies such as MSB.

In CSL's case, even after the company was well-established, profitable and dividend-paying one could still have bought the shares at that already blue-chip stage, and one would have created untold wealth for oneself.

And without the risks typically associated with so-called "emerging blue chips".