Hi long_haul I came to ACR by screening for stocks with long...

Hi long_haul

I came to ACR by screening for stocks with long successful histories, exhibiting a current near death experience, selling for less than cash asset value.

The balance sheet has always been pristine. There are minimal off balance sheet nasties (probably to be expected in this sort of industry). There have never been testosterone charged acquisition sprees.

Finding Samuel Terry as a substantial holder was a very pleasant surprise.

I would be very surprised if the company strays from its generics strategy any time soon. Remember, shutting down the onychomicosis program will have been a very, very hard decision for them (given the air play they had recently given it). But given the need to conserve cash until revenues are in clear sight, there can be little doubt it was the right decision.

The new CEO seems to be level, non promotional and very well credentialed for their generics strategy. I think these are big plusses.

With respect to cash burn, my understanding is that the rate of cash burn will increase the closer they get to market (FDA approvals, contract manufacture of samples, sales partners etc).

This is no bad thing, because it means if more cash is required it will likely only be after there is a great deal more certainty wrt revenues. A rights issue CR under those conditions, is likely to be very attractive.

This is the sort if business that displays exceptional economics, if revenues can gain traction. Whats more, I view the R&D expenditure as an inflation protected asset. If inflation is headed up from here, the replacement value of all that R&D goes up with it.

There are no fixed assets here (essentially) that will suffer from inflation.

Cheers, Mars