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In the article, Archer mentions that the bulk of the milestone payment of $400m might be paid once KarXT gets FDA approval. I wasn't aware of this. Is he just guessing or is there some truth behind this ?
Thanks for posting the link. It’s a good summary of the investment case and as Dallo pointed out it does miss out a couple of important notes such as returning capital to shareholders following the Karuna sale.
Whichever way you look at the investment case, undervalued is an understatement. I will continue to add whilst the SP is playing around at these levels.
By the way I am not being critical of Archer's analysis which is very thorough and informative for new investors.
I only hope the market focuses soon
on the hidden gem that is Puretech before a smart predator swoops.
Lesley
Archer has copied and paste some of Puretech's website comments but also appears to directly quote some of my own recent analysis ( and others here on LSE ).
I agree with many of his observations but he has omitted the company's commitment to return cash to shareholders following the completion of the Bristol Myers acquisition of Karuna which is only matter of months away which could result in a special dividend/ buyback of the order of £200m.
Also following the completion of the current buyback programme in 4/5 months the free float will be approx
50 million shares which is nothing.
An announcement of an IPO for Vedanta in the near term could also be a major catalyst for a mega rerate of Puretech shares imho.
Like others here I am dumbfounded by the current share price but this could dramatically change in the weeks ahead.
ATB
Been watching for a while and have dipped my toe.
Scratching my head trying to work out why the SP is where it is. Don’t like assuming the old cliche of ‘there’s a seller’ but can anyone please briefly summarise why it’s so cheap?
Downside risk looks almost non-existent (famous last words…)
GLA!
Don’t know who this guy is but he’s just copied and pasted from Puretechs web page
Nice write up on PureTech here:
https://uksmallcapstocks.com/f/puretech-health
Any idea why Gelesis is reading $0 00
Leslie50
‘Investors not in it for the long haul’
That’s AIM summed up nicely! ;)
JSB I agree, surely the SP should be higher than £2
If LYT-100 were to fail, you will still have a company with more cash than the market cap, 40% in Vedanta which could IPO in the coming year and a stacked pipeline across multiple indications. I don’t see much risk on the side of shareholders when the SP languishes under 200p.
Lots of positive comments here.The big concern for me the constant “ Potential “ of the company. I bought at £4 so long road ahead. My concern is investors aren’t in for the long haul.and are they a once trick pony If even Karuna is approved If Ly100 fail then I think the company is in big trouble.Sorry for being negative but I do think a bit of realism is needed
This share is too cheap and today’s volume shows something is happening .
Just added again. I’m maxed out here now!
Most of us on here think it’s incredibly cheap.
The market is only just catching on. Small free float, so when it moves, it’s quick.
Price has popped
Just got some myself, looks incredibly cheap.
Thanks to @baroninvestment on twitter who highlighted with the detail.
Dallo - thanks for correcting my version of the free share calculation. It is still intriguing and indicates huge confidence in this company.
Hoping this tests £2 soonafter the short pause. Then kick on up
Maybe the large seller has finished for noe.
Today auction looks different , buyer present , wil lthis be the turn
Dallo - thanks for the calculations. The vultures must be circling given the Karuna payment is coming in the near term and cash will sit significantly higher than the market cap and the remaining assets have massive potential and value within them.
By my back of the envelope calculations, it looks like the current $50m buyback programme is nearly 80% complete with an estimated 4 million further shares ( at a benchmark assumption of the current share price)
to be acquired.
Based on yesterday's buyback of c100,000 it will take a further 2 months or more to finally complete the full buyback and will leave total issued share capital of c265 m of which, at most ,will result in a free float of c50 m shares which is paltry for a company such as Puretech.
One positive announcement could see daily trading volumes close to the free float and then we will see serious upward price movements imho.
Patience still required.
ATB
It makes no sense at all Dallo. I’m very interested to see how this plays out.
The buybacks are also capable (when the volumes are high enough) of taking 1 million shares out of circulation every two weeks and tightening the free float day by day.
Oldernowiser
Invesco own c24% with 8 other institutions including Lansdowne, M&G, Baillie Gifford, Hargreaves owning a further 47% or so .
Daphne Zohar owns c 4.8% with other management/Directors holding about 4% between them.
So nearly 80% held by Institutional and management investors leaving a 20% free float.
The share price is being tightly controlled imho and bears no relationship to the actual economic value of the company.
Why this is the case is totally perplexing to me .
Very strange indeed.