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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: OpusX who wrote (986)9/30/1999 6:50:00 PM
From: Zeev Hed  Read Replies (1) of 1438
 
Robert, from the little you have presented, I would say it is a good thing. The offering is probably well above book value. Short term, of course, it brings in more supply of stock. What you need to do is estimate the price at which the offering is going to be, estimate their burn rate and the time to market (and thus sufficiency of funds to get to market) and then take a valuation 9assuming they are going to be successful) of so many doses per year per patient. I would say that if this drug becomes accepted and works, it will be used as a preventative mode and could easily become a billion dollar drug. Of course, you got to remember that AIMM had a number of such drugs but somehow they did not do well in phase III and thus AIMM sunk to sub penny territory.

That is the cursory look. I'll try and put some time on it over the weekend. and see if I can find some more.

Zeev
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