All that risk for just $500k for the underwriters. Interesting call.
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All that risk for just $500k for the underwriters. Interesting call.
We are out of the ''science and quality of the product'' territory and in to the ''speculation of the market'' territory now.
There are some big numbers on the depth especially at the top of both buy and sell--but despite your faith W69 its looking like a more difficult task for the underwriters atm.
I suppose some could look at this as a possible chance to buy cheap if they are supporters, if things get worse. The way I see it ,the companys ok ,its the underwriter and the SH that are taking the risk atm.
Someone is putting some big numbers to keep the SP from hitting the psychological 50s --It would be interesting to know just how the underwriters are playing this--its clearly a position they do not want to be in. ---While this continues on ,they either cut their losses and hope it all works out, or throw some serious dosh to get the SP back up and instill confidence. (If I was them I'd be hoping for low volume to make it easier to influence the SP)
It would be very interesting to hear the story somewhere down the line in the future (but I doubt we ever will)
Might be awhile before we get back to fundamentals.
I would imagine though that PEB will try to pull something out of the hat in the meantime in the way of a ''feel good'' announcement.
If I may, some perspective on this type of investment. Biotech takes a long time; Biosite, a marker company in San Diego took 23 years to get to reasonable turnover (US$300M). Boston Heart Diagnostics is 30 years and just now cutting US$80M p.a. A biomarker company that I have some more personal knowledge of, Critical Diagnostics, is similar to PE and has one main marker. It has been around for 16 years and is now cracking US$20M p.a.
The ideas, science and products behind PE are solid. It simply needs time and consistent backing. Put it in your drawer and do a monthly check. NZ will never, ever get a decent biotech investment sector unless the investment community is prepared to mature and learn how to be more patient.
Im guessing the underwriters are going to war and doing some serious buying
Unless they find a serious big name backer for their product---not so sure your research is going to create much optimism for those with preconceived ideas on the sales of this product.
still its refreasing to see a post on some in depth research on how products actually penetrate the market.
Thats one area that has been lacking so well done, and I,for one,appreciate the input.
One thing I don't understand is that its the incompetence of the CEO, why does the s/holders have to pay for it, through share raise. It should come from the ceo...he already cashed out of the shares.