[ NSIX and CNSI ]
I don't follow NSIX. Again, I'm a biologist (immunology), and I strictly stay with what I know best. NSIX is largely automation, not biology. However, some comments..... they've been sucking in investors on this story FOREVER. However, in my peripheral vision, I thought that their efforts were largely respected. I was shocked, making a quick trip to Yahoo, to see that this once high-flyer only has a market cap of 150M. So, if today's news is backed by management with a business plan, I'd say that your gut has you headed in an interesting direction. Be sure to consult someone whose expertise is more relevant. ;-)
CNSI....... I follow them closely. Although highly respected, their demise was predicted, here at SI in the CNSI thread, by Dr. John De Castro. Dr. Miljenko Zuanic is another knowledgeable contributor to the thread. You can spend a lot of money, but you can't find better analysis of a company than you'll find here (the CNSI thread).
The cupboard is pretty bare. A project in phase I clinical trials is, unfortunately, of the same [very general] compound class (NMDA receptor antagonist) as those that have failed.
They're selling at only a slight premium to cash in-hand, so it's not going south very fast. But, the question is, are they going north? In dollar terms, the answer is "not very far very fast". In percentage terms, I'd say that early-stage projects, patents, and the infrastructure are undervalued, and that 50% would be justice. however, dead biotechs are sources of burn and often stay dead for some time. My call...... very respected science, deserving of a bit more respect. One red flag...... management started talking of subset analysis of patients after a phase II trial. To me, this is a sign that truth in lending is compromised.
Final comment..... there are many better investments, long-term, in biotech. Please always remember that I won't invest purely on TA alone, that I'm here looking for respected (alive) programs which *also* look attractive based on your analysis.
Thanks VERY MUCH for your comments on CNCT. I'll watch for that second bottom. This is fun. I'm checking the list every day. If I don't comment, it'll indicate that either (1) quality is lacking, or (2) the quality companies don't appear to be particularly undervalued or facing special circumstances.
Rick |
