Now let's talk about POTP...they have to raise money soon and I suspect the stock price is in the toilet because the street is worried that there's some undisclosed, but bad, reason why this hasn't been done previously. Perhaps this is true, I don't know, but I don't think so because nothing has changed fundamentally.
An alternative explanation is that the bankers who will provide or broker the next capital infusion don't want to fund non-talabstat programs because the company will sink or swim on the talabostat results. So it's equally likely that one of the conditions for the next round of funding is to focus on talabostat and put everything else aside for the nonce.
If I were a gambling man, this might be a nice time to double down. If I were a cautious man, I'd be in CDs and money market accounts. However it seems Don Kiepert and Rich Small are gamblers, too, and I don't like that in my management one little bit. But except for their financial circumstances, the company has done a very nice job executing their program; that's good.
So my bottom line is that I'm going to hold my current investment, because I think it's most likely that the downsizing was a condition of the next funding round and they've never had sufficient cash to finish their phase 3 trials, so nothing has changed in that regard. But I'm not confident enough in that reasoning that I'll buy more now.
Biotech microcap stocks are not for the faint of heart, the thin of wallet, the anxious, the dyspeptic, or those who wear silk knickers, but it can trigger near-pharmacological levels of dopamine in the nucleus accumbens of a successful investor.
RE42 |
