| |
Steve:
Westergaard has an invoice outstanding for $8000 to SUNP for attendance at our Novemeber conference, for which we have not been paid. Coverage on SUNP was started on July 1, 1997. To quote myself (sorry), the initial write up was less than spectacular,
"Microcap pharmaceutical companies who successfully couple a strong product pipeline (including clinical trials), major strategic alliances, and diverse buy-side institutional ownership routinely command valuations in excess of $125mm. SUNP's has all three of these components in place, yet has a fraction of the market capitalization. Is the valuation warranted? At first glance, companies who are not sponsored by large sell-side institutions but continuously seek to dilute equity in exchange for promise tend not to have a valuation commensurate with ownership. Only in a dwindling few cases can this "1980's style" management of an emerging drug company enhance shareholder value. To SUNP's credit, management is seeking not only to partner their proprietary compounds, but possibly generate sales from acquired technologies. Thus, SUNP is in the process of transitioning its strategic model to that employed by "90's" companies. We believe that this management style in the long run is optimal to shareholders, especially if one or more compounds gain FDA marketing approval. SUNP may become one such company."
However, as I have established a relationship with the firm, performed a valuation, written several pieces on their capital structure, and witnessed some exceptional developments with both of their lead compounds, my opinion of the company has changed dramatically. For me, the guy who thinks that firms without approved products do not manage risks optimally, following SUNP may tell you that I think the company is severely undervalued. Otherwise, I wouldn't follow it, I promise. Stefan Borg, CEO of SUNP, should know this.
Steve, you would do well to refer to my comments at westergaard.com on Thursday the 12th about how conference attendence does not guarantee a bullish write up.
FJA |
|
