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Biotech / Medical : BSD Medical (Long Term Investment Oriented)

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To: pleonastic who wrote (174)8/13/2014 6:11:14 PM
From: geoffrey Wren   of 178
 
I do not think the price is where it is because of high frequency trading or short selling. The price reflects the market opinion of the value of the stock.

Different types of companies go into distress in various ways, but all have one thing in common: they run out of cash and the ability to raise it. High tech companies never run out of ideas or hopes; they run out of funding because the market senses that in consideration of the time to fruition of an idea, the risk of bad developments, the burn rate, the risk of competition, etc. the prospects are dim.

The guys running BSDM are not business guys. They have taken this company to a point where if they make a partnership with a bigger company, they will do so from a position of weakness, and if they try to continue for a few years as a standalone company they will wither away.

I am hoping they have the good sense to make a deal now, before they get into a weaker position.
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