"Potential is not worth the paper it is written on."Stocks...

"Potential is not worth the paper it is written on."

Stocks usually have potential as a factor in determining what the market is willing to pay, particularly in the speculative market. As a company is de-risked with each achieved milestone the market may adjust the value it is willing to pay.

The value for PRR comes from the important patents it holds, the years of research that has led it to the final trials, the cash it holds to progress the end trials(recently about $40mill), the revenue potential if it gains FDA approvals for commercialisation. Also of note is the calibre of the personnel among them being CEO nominee Matthew Lehmann and Dr Ian Frazer who have excellent experience with FDA approvals. The Board is also first class with Lucy Turnbull AO as the chair.

Like many companies the sp has been in downtrend due imo to a combination of market conditions and an over reaction to recent announcements on issues peripheral to the company.The stock is currently trading at a price as low as when lesser milestones had been achieved and when cash was obtained monthly by issuing discounted shares. The company is now well funded and has no debt. It does have a substantial credit facility in place should the need eventuate.

This company cannot be valued just on its cash position because the cash is there to be spent on continuing the trials. Its valuation is based on all the things I have mentioned in this post including revenue potential. I have endeavoured to be as objective as possible with my response.

Just my opinions on the issue.