Jeff,
GLIA is not in the same boat as other biotech companies whose stocks have gone up 10 times. Its stock is roughly the same price as before the FDA problem. I am not sure that lack of progress means the stock is relatively cheap now or relatively expensive before
For once, I agree partially with you. To do an offering here would be a disservice. It would not, however, be difficult to move this price up and do a secondary (and giving the mgmt team more faith than they may prove to deserve, I'm not sure we won't see such a series of events).
With that funding they can advance more programs more rapidly (and wait longer to extract more attractive terms from partners). If you listen carefully to the conference call IMO you hear hints of this in the responses to questions.
If you look at some of my posts in January on SI, you'll see that I also agree that on some absolute scale of valuation there are some out-of-whack valuations. And I would argue that you shouldn't buy anything you aren't willing to hold for 2-3 years to get your ROI. That said, RIGHT HERE, RIGHT NOW, those absolute valuations don't matter, it's what the market is willing to pay. And properly pitched, GLIA is worth more than $21.
biowa |
