Sam-
What is your particular attraction to CTIC? I'm not being critical, just wondering if they have a particular product or products that you think have significant upside, or if you like them for some other reason.
They are losing so much money, and will apparently have to continue issuing more shares for at least the next couple of years, just to cover their expenses, which appear to include fairly high SG&A. R&D spending doesn't bother me, as it's necessary to develop marketable products.
Certainly the projected revenue growth for 2005 is impressive, and I like the fact that insiders are not selling, and don't appear to have sold even at higher prices, except for Mr. Bianco in mid 2003, but those sales may have been to pay taxes and/or to cover the costs of the shares exercised and held.
Overall the put premium seems pretty solid as it's unlikely the stock is going to zero anytime soon, but I'm curious as to your particular affinity for CTIC.
Separately, the chart looks like a pullback to the mid 5's is in the offing, so that might be the place to take a speculative position.
Thanks in advance,
Carl |
