So quoting Waislitz: "
If this company was based out of the US with this potential and the results it had, the ability to raise capital would not be as problematic. It would not have got the attention of the short side promoters that it gets in Australia.”
Well geez oh peez! Someone other than me did actually realize this eventually. I am glad. LOL.
I have been saying so for a while now. My last post even said that the dual listing of this stock is a curse.
Being a holder of this stock for over 5 years, I have agonized at how the share price is capped and pushed down regularly. Many moons ago, someone on this board, presumably from Australia, asked me if Mesoblast were to be a US based company, would the market cap been better? I was a bit naive at that point (this was 5 years ago and Mesoblast was (and still is) my only non-US based stock holding) and I answered something like "in today's world of global economy facilitated by easy communication, there are no boundaries", blah blah blah. Little did I know then that it does make a difference.
As I write this, that joke of a company, CytoDyn has a market cap of $1.33 billion compared to $947 million for mesoblast. And CytoDyn is on the freaking lowly OTC exchange and has zero revenues, no approved product anywhere.
So what is exactly wrong here?
@LeftYahoo - how do you explain this? CytoDyn has had a better market cap than Mesoblast for a long time now. CytoDyn is just one example, by the way.
I remember April 24, 2020 well. Mesoblast on the NASDAQ gained 139% that day. The ASX followed up with a 41% gain. And as has been always the case, that put a lid on the NASDAQ which made it "match" the declining price on the ASX.
"Arbitrage" - a dirty word. There are other examples too but this one is a glaring one where the Mt. Sinai results were so epic but the ASX said "whatever".
I have asked some of these questions before but I will do so again, because share price matters. The science is sound, the trial results are great, fantastic even, but the share price matters. Companies with new technologies, especially the ones amounting to a paradigm shift, are valued richly, way before they turn profitable, at least in the US.
1. Why is Mesoblast headquartered in Australia when most of its employees are in the US and almost all its clinical trials are in the US?
2. Why does Mesoblast's Investor Relations suck? There are many companies I write to and I get a prompt response, even from the CEO sometimes. With Mesoblast, never. They seem to treat individual investors as chopped liver.
Over the last quarter, institutional ownership in Mesoblast on the NASDAQ has dipped to 2.01% from 2.84%.
If I can be considered an institutional owner, I am among the top 10% holders on the NASDAQ. I guess that does not matter to SI.
Look, in today's age of Robinhood trading, retail investors do matter. Just look at what happened to Gamestop.
I do know of several stock pickers who interview CEOs/CFOs to recommend stock to their large subscriber bases. I can guarantee SI or his CFO would not grant an interview to any stock pickers. Again, retail = chopped liver. They don't matter to Mesoblast.
3. Why did the company not issue a statement that the lawsuits are frivolous? Why do we have to read that when someone posts a newspaper article on HC? A CEO cannot ignore damaging articles in the press or on the web. The CEO of Omeros actually filed a lawsuit against a writer that published falsehoods about his company. Yeah, I get it that SI is busy with his science. But you got to be proactive and watch out for your shareholders.
4. Why does the company halt trading when there is a capital raise? This one is baffling. And such trading halts are NEVER released on the US side? The US investors are left wondering why trading stops on the NASDAQ. Why even list the company on the NASDAQ when you don't even release news on here?
5. US holders pay a 4% fee just to hold the stock. Why? How does that provide an incentive to long term holders? This is like a dividend we are paying to JP Morgan Chase.
6. The arbitrage plays straight into the hands of short sellers. Close to 648 million shares outstanding makes it easy for penny flipping on the ASX.
(20min delay)