I have been pondering why the share price is so low at the moment. PAR has a fantastic product and potential which we all know about and it’s the reason we have invested. It’s fairly simple to summarise the “why” at the moment and it all boils down to management credibility. Too many examples of unmet milestones, backtracking on previously stated goals, and avoiding clear explanations of shareholder concerns. Basically, no one outside of the PAR inner circle have an idea of what is really going on behind the scenes. Here are some examples;
1)The 008 trial. WTF happened here and why is there no plausible explanation? 30 patients dosed and then the trial halted and we get no proper explanation. Are they hiding something? Sorry, Covid does not cut it and it looks like something was .stuffed up. If you don’t tell us what happened, the market believes that something went wrong and the company has wasted precious funds.
2)We were told that all the 10 NFL players where all having follow up MRI’s. Why would PAR not release this to the market? If it was good, it would boost/support the share price. PAR told us they would tell us the results and they did not. Markets conclusion is it must be inconclusive or show no DMOAD properties.
3)Risk regarding the strength of Patents and IP have not been addressed. In a recent webinar PR stated that he would address this at the end of the presentation if he had time. He did not and this issue needs to be address properly and in depth. This should be the first item on his list not the last. We have all heard and know about IPPS and what Paradigm does. No need to tell shareholders this for the millionth time, just address the issues on hand that are keeping the share price low. Markets conclusion is there is a risk regarding IP and Patents
4)The elephant in the room regarding the additional funding that will be required to complete the phase 3 trials has not been addressed. Market’s default position here is that it will most likely will be a cap raise. With no deal, the share price will languish and this will maximise dilution so why invest now? The guidance given by management was they are keeping their options open but the longer they leave their options open they also become more corned into a cap raising at a really low price and the market is anticipating this.
5)Nonsense of stating “don’t want to leave anything on the table” when discussing a future deal. PAR will potentially be leaving nearly everything on the table if they don’t do some sort of a deal to validate Zilosul. Share price is ripe for a hostile takeover so any sort of a deal, even sacrificing having a smaller deal for MPS would help boost the share price and gain maximum value.
Please, no more spin as most shareholders have bought into the story and where excited about its potential. Address the above issues now, clearly and don’t gloss over critical items as the market will then just believe the worst, otherwise why not let the market know?
At the moment management seem lost and don’t inspire any confidence as they don’t hit milestones, backtrack on previously stated goals, and avoid/mask issues that need to be communicated clearly to shareholders. This all leads to a lack of credibility, hence why the share price is so low. Definitely not inspiring any confidence and they currently look like they are a deer in the headlights.
(20min delay)