Price correction and long term view11 Jan 2024 13:29
First time poster, on verge of retiring and going to spend more time of my hobby, in investing in early stage companies, with growth prospects.
The correction in the share price today, I do not believe is down to I institutional investors taking profits, as one poster indicated. I cannot see II's selling off such small amounts of stock. More like private investors seeing the share price slightly falling, worrying and joing the herd, making the price drop more than it might have been. In other words, taking the short term speculative view.
Taking the longer view, when the next interim accounts and full YE results come out, readers should hopefully see:
- total income in previous financial year: £1.7m
-without any further income from now, income on a comparable basis, will include Invidior £15.95m and
Astra Zeneca $11m.
That comparison in itself will attract attention, although sales are not profit.
Even if cost of sales and overheads are similar to previous year, this would indicate positive EBIT being the result.
There will be minimal, if nil debt. Another tremendous positive in the current interest rate environment.
Even if company continues to burn cash with further R and D on new innovative solutions for medical conditions, at the same level as last year, I believe should be more than enough cash in bank for circa eighteen months to two years, even without any additional interim milestone payments from Sanofi or AZ, that may be received.
As previous contributors have already mentioned, there could be interest from larger biopharm entities in this little company.
In summary, one in my view to have in your portfolio for the long term (but not for widows/widowers or orphans) , as long as you can ride out the roller coaster ride!