Really? So there is a perfect market which will see a company achieve a workflow target and value them at an exact amount according to that achievement?
Ok, so let’s do a quick comparison to see if a board has ultimate control of the share price.
NFX has a product that has been tested on human tissue, twice, and found to be an improvement on standard of care. The company is valued at around £13m Mcap. C4X has a similar product, actually I should say a similar idea. They have yet to figure out which molecules to use, or patent it, they haven’t tested it or got a programme for testing it. The company is valued at £90m Mcap.
NFX management have achieved milestones in the product development whereas the others have yet to start. Who has ‘ultimate control’ again?
In fairness the board can't manipulate the shareprice, nor can they stop people from selling if they want to. The company has set out how it will add shareholder value in the broker note. The problem is its not a quick timescale.
If you take a cold, clear eyed approach you ask what makes the company worth its current shareprice / mcap?
The bigger issue is why is there a distinct lack of consistent buying interest?
We've been through a few high volume days an now nothing, noboday seeming to want to take a position of any kind, which seems ridiculous given that the Allenby note highlights a large inflection point within the next quarter.