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03/02/15
11:40
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Originally posted by hopeful2
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Hi abdm
"What exactly are you implying here hopeful? Do you believe that susieq and a couple of other posters here have corroborated with GlaxoSmithKline to tell us a couple of porkies?"
Of course I am NOT implying what you suggest. That is just silly!
What I am implying is that there is far too much dot-joining here that is being banked on, by some people on HC, as FACT.
Until there are more definite official statements (without the carrots and ambiguities), or official PDAs as with P&G, then all the expectations and "facts" being bandied around are mere speculation. Even then, the PDAs remain frustratingly mysterious. No indications of projected sales figures, no percentages of royalties and no income projections. It is all left to shareholders to hang on every quarterly, every announcement and every scrap of dot joining here on HC, to guess what revenues might be received by OBJ from these PDAs. In the meantime, as Surges has pointed out, promising deals, such as the manual toothbrush with GSK, fall by the wayside.
You talk of market overreactions and I couldn't agree more. That's what the market does. I firmly believe that the market reaction to the P&G PDA has been over the top. The rise in the SP from 1c to 13.5c was clearly an overreaction, taking the Market Capitalisation from $15 million to over $200 million, based on speculation of future incomes that have been over estimated in my opinion. I think the market is slowly coming to the same conclusion.
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I was going to use the market reaction of another Australian biotech company that has a PDA with P&G to gauge whether or not you could be right about the markets overreaction to the alliance between OBJ and P&G. Unfortunately I couldn't find one.