RE: RE: Motley Fool today "Is Scancell the best penny stock for me to buy t...4 Nov 2024 19:36
OK RR, as we still seem to be on this, here are just a few of the reasons the MF article is not worth the virtual paper it is written on:
"Scancell has no revenue stream"
WRONG - $5M up-front plus milestone payments from Genmab up to (from memory) $400M odd.
"What does this mean for investors? Most likely, shareholders can expect a lot of equity dilution moving forward as Scancell looks to raise capital."
WRONG - a cursory review of the latest interviews tells you Scancell are looking at licencing mabs and partnership deals.
"And with the firm’s fate entirely dependent on external investors offering capital"
WRONG - see above. And pointless - a bit like saying Unilever's fate is entirely dependent on consumers buying their products.
"Penny stocks are already high-risk opportunities. But this risk skyrockets when entering into the world of biotech."
True, but that shows a complete lack of context. This article is about Scancell - risks massively mitigated for Scancell for various reasons (which have been discussed here many times)
The article is textbook de-ramping - say a few positives to give the impression of balance, then pull out all the negatives you can think of, ignoring context and using generic arguments.
(MF articles do the same for ramping, just the other way around).
More fool you for considering this to be balanced - as I have said, at best it is the worst kind of lazy journalism, at worst manipulative with a hidden agenda, and quite sinister.
But what do you expect from a "free" tips service? Honesty? Transparency? Good investment advice?
Motley fool make their money somehow, and behind the scenes there will be a reason why this article was written and published now as part of their "free" offering. Think about this for a bit, and stop being so naïve.