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Microcap & Penny Stocks : Cryogenic Solutions Inc. (CYGS)

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To: celeryroot.com who wrote (3268)8/21/1998 11:01:00 AM
From: Graham Marshman  Read Replies (2) of 4028
 
Bureaucracy never changes as fast as we'd like, but it is gratifying to see some positive progress and it does keep moving in the right direction.

There also significant depths in this subject when it comes to stocks. They do not appreciate on a big bang theory, they do not stagnate until final approval.

Abella, when he was at Westergaard had a valuation model that was excellent in understanding fair value of biomed stocks. Taken off when he left, but significant factors are:

1) A potential market cap contribution for each application set according to market size and first year penetration.
2) Actual market cap contribution calculated by using a factor based on status. Preclin was a flat $5M. Phase I was 30% of potential, phase II 40% etc. up to 80% with an NDA
3) Add market cap from patents
4) Calculate management factor multiplier based on 5 year revenue/defecit.

The point here is, there are very significant gains to be made in market cap in early stages. I also believe the reductions that both already have been achieved and can be expected from FDA reform are more positive to market value for biomeds than have currently been appreciated by the market.
Graham
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