Bruce, You are right and you proved what I am trying to say, that after the good news (FDA approval) then the same hypers created the big drop ( FDA review of the plant, or the poor eficacy)the market responded not believing, even after the company has more than $100,000,000 in cash at hand.
Fertility division sales are nil, compared to the market valuation, sorry for my abstract thinking. The actual concrete sales in 1996 were $3,021,940.00 (Zona's report to shareholders)How much market value can this support? even at a generous 10 x sales just $30 millions ( not 1/4 billion dollars) so you win that one too. Sorry for the $0.00 .
Huge or small market valuation, of course it depends on the FDA approval, which could be for real or could not, I do have my doubts, then I do consider the market valuation huge. I will be back in even at higher prices if approval (and or sales comes) for now is all yours. I preferred companies with earnings. Or strong science, the studies are not in the scientific press only in the public relations media, I will wait for the real ones.
I am not questioning Von Emster credibility, he is a public persona with a public view and it just happens to involve tons of money, I will believe in him when the reports of his buys at actual prices come around, before that it is fairy tale to me. He is the one that have to prove himself to the public. I told you my criteria to believe, like Warren Buffet put the money where the mouth is.
Mexican sales, it is not a good strategy to win dollars in Mexico? They are still dollars to many american companies.
Besides, the product is off patent, so anybody can sell it if they want, especially Barr Labs who do not care for patents and fight big Pharma patents. So, even if a success there is not big margin to be made. Read Zona,s own caveat about their issue Vasomax patent and pending patent ( for me of no value ).
I did have good luck in zona at a profit, out too early I did not understood the market ability to create fluffy market value. But, always something to learn.
Good luck, and be careful.
cacaito |
