re: hmmm. intelligent investor This report is not logically...

re: hmmm. intelligent investor This report is not logically coherent. At the core of all stock prices is the Net Present Value [NPV] of future cash flows.

With stocks with forecastable cash flows eg banks analysts can agree within a reasonable range.

With biotechs you have to incorporate risk and market penetration to get revenue and then add timing issues.

However, the news that QF-Gold was immune to BCG was much more important than a delay to revenue from QF-1.

The risk is very low for QF-Gold so CST has a much higher potential revenue with a moderate delay of say 1-2 years - this is a better NPV outcome than the QF-1 model. If only QF-1 was available and its revenue was delayed then the present valuation should be lowered.