Where we at?, page-116

I asked my mate who is a stockbroker this question about par a few years ago. his answer was enlightening.

firstly as denial mentioned given we are not p3 and tiny that counts many funds out. once we get to P3 a much bigger pool of USA biotechs can look at par.

but anyway my mates answer was 2 fold

1- my mate was selling 20-40 stocks on any given day to 5-15 clients and an investor had time to listen to 1-2 good new / spec ideas max a week from this broker as opposed to his regular run of the mill coverage. these pitches last for 1-5 mins per stock. so would my mate pitch par vs another name ? sometimes he would sometimes he wouldn't. if he did pitch it when would he next pitch it again ? how much can u cover in 2 mins ? not a lot. I then thought about how much time I have spent on this stock in the last few years to get my head around it and it is in the hundreds of hours so that kinda made sense to me


2- only a very few fund managers ( ie individuals ) are willing to take a real punt and yes that is what we are at this point. a punt. a fund manager will get some kudos for outperforming their benchmark or finding a hidden gem. as an individual however they can get fired if they buy a dog. so best to wait until there is more evidence / data / history etc to buy.

ultimately of course with rates rising, bio techs globally getting spanked and par performing very poorly, it's almost impossible to sell the story to the uninitiated.

I'm confident that the story can turn and IF it does we will get a broad swathe of insto funds looking at us domestically and internationally