RE: Seems a good place16 Aug 2022 14:48
If you picked up this RNS and just read the tech I think you’d be amazed. Then you look at the mcap, now £5m and you would wonder what on earth is going on such is the huge disconnect between its technical achievements, impending FDA and alliances with top universities and cancer institutions.
Then of course you get to the financials and see the 330k loss at half year against a running cost of 583k and it’s pretty obvious that cash will be needed even if fx turned in our favour which accounted for 125k of the losses!
With NIMBLE and the LA contracts I don’t see revs doubling over the next 6 months to close the gap anytime soon. But that is the norm for an emerging biotech and on a peer basis this balance sheet is pretty good!
Now the question for investors is is the SP representative of the potential v what is really a small amount of cash needed?
The questions for traders is pretty obvious can I sell and buy back cheaper. Or should I sit and wait for 2p which seems likely or should I sit and wait for CLN’s (likely) or an accelerated bookbuild (unlikely) and the SP to dip below whatever the placing price is (likely, as that’s the trend).
So whatever one’s position expect more short term volatility. But also expect the clock to tick down on the FDA approval and should that manifest then the SP will imo be at a significantly higher level irrespective of immediate dilution.
This is not a ‘widows and orphans’ stock. It’s high risk speculation with extreme SP potentials either way.
To invest in these stocks you usually have to be an active investor. I was on a free carry but put some back in. I sold some today just incase I can get them back cheaper. There was no problem selling which was unusual.
But imo that’s the way to play it, slice and reinvest so your average is always in touch with the SP else you can end up 80% down and then the end game looks a long way off.
There won’t be any problem getting cash, TB knows what he is doing but for those investing I would say you need to align your average SP with his or at least be reasonably close and be able to tolerate the volatility here and have a basic understanding of how these instruments are financed.
Good luck with your investments
Usual caveats
Trek
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