PTD unknown

would this be a warren buffet share choice

  1. 1,529 Posts.
    lightbulb Created with Sketch. 46
    Would this be a warren buffet share choice??? (the subject title wont allow me to put in question marks)

    Just thinking out loud here; I bought into the share yesterday, and from what I've gathered from reports, recommendations etc, the company has got:

    approx $120m in cash (using the may half year report and minus the cost of the merger, but i'm just guessing that cost, so feel free to correct me.)
    the company has $100m receivables in the next four years, thanks to royalties etc.
    So that gives us a possible rough figure $200m for cash position (including future receivables, but minus cost of research, so correct me if this assumption is wrong).

    The current market cap is $290m when i bought in, so with an uneducated point of view, so thats about 69cents in a dollar backed up with cash.

    I didn't even take into consideration the value of the research items (including EGX materials) yet, those are pretty hard to price so i better leave that to the experts. But the impression is that if they are successful any one of them can be company makers, just that their odds of success are less than 25% at this stage, with 25% being the higherst in one of the antibodies (using the may analyst report)

    So i'm kinda confused with why is the SP so low? Could there be any negatives that I'm missing? If you know any negatives fill me in thanks.

    just keeping in topic, this company has alot of cash just lying around, which buffet loves in a company, the nature of the company allows it to fill a specific market niche, so we have the buffet moat of consumer assurance/brand power, so all it needs now is for the CEO to be interviewed by buffet before he decides if he wants to buy in or not :D . This supposedly buffet analysis is just my 2cents.

    Your input to any of my questions listed above would be appreciated.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.