@travelbug2 let's hope we have turned the corner and those 2 brokers would stop their price control.
The future income derived from the 3 drugs already announced would be
$1b + $2b + $3b = $6b US Dollars (A$8.6b) for treating RP-11, ADOA, and for Phelan-McDermid Syndrome respectively.
For biotech shares in the US, the P/E ratio is 17 on average. Let's apply a P/E of 10 just to be conservative in Australia until PYC is listed in the US Market. The market cap would be at least A$86b. That would make it rank 4th in the ASX50 behind CSL. Sure it would take 2, 3 or 5 years to reach that target. In the mean time, if another Kidney or CNS drug is added to the pipeline with US5b annual income, market cap would swell to A$157b in a couple more years, ranking 3rd ahead of CSL.
Now you would see the enormous potential of this share and it could be the reason for brokers to stagnate the SP regardless of major milestones being met and quite possibly even after patients are being dosed. They just want to slowly accumulate shares at a bargain basement price of 6c.This cycle could not be broken without the following steps:
- Educate existing and prospective brokers/shareholders about the enormous potential in PYC's income stream.
- Solid news such as successful readouts from clinical trials which would cause a quantum leap in SP.
- Other brokers to use an exact opposite tactic to defeat those 2 by buying shares slowly and consistently.
- Preferably all of the above and have Step 3 maintained even after solid news to stop the SP drifting back down artificially.
I am determined to make Rohan aware of our frustration on the seemingly controlled SP and the needs to do more Road Shows to educate many more brokers.
(20min delay)