I see I have the honor of the 500th post!
I'll try to increase the quality a bit over
some of my recent posts...here goes...
I took the following checklist from a fella off
another thread. Let's run through the list on cnsi.
The list comes from Dan off the CEGE thread. Just
disregard the gene therapy bit.
1) Overall, relative market capitalization given prospects.
Thus, if there are a few gene therapy companies trading for
peanuts, and at the same time investors will pay huge sums for
hundreds of Internet stocks, I see opportunity (potential for
high demand but small supply of shares).
Check! cnsi's valuation is equal to about one third of
money that should come in over the next, say, five years--
just for rhGGF2. Burn is covered...more than covered by
the deal, and they've pared everything back so far,
would not surprise me to see a little re-hiring. Maybe
all of that was part of the plan--sort of a restructuring.
2) Partnerships.
Check! Bayer. Okay okay, not really a partner in the
sense of a drug going to market, but I think having
a partner so early is a strong signal.
3) Milestones, and milestone payments. Quality of
milestones -- are they announcing results from a test tube,
or from clinical trials?
No. Waiting for IND filings...then clinical, a long road
and I've always said this is an investment with pop appeal.
4) Breadth and applicability of technology; potential for revolutionary product introductions.
Check! I think so anyway, I've read everything off their
website and out of the PR from the last year. Checked
what little I understand against my cell biology book
etc. Plus the various indications show how just how a
successful compound can work its way into numerous areas.
Of course only a gaggle of neurobiologists and CNS specialists
could really judge the potential--with any luck cnsi will get
some coverage in the years ahead from neuroinvestment or
another of the newsletters.
5) Track record (how long a company has been doing
work in an area).
Check! Although not a track record which is full of
success...nevertheless, there are a smattering of T's
that are fairly old, and to me this feels like a whole
new second chance for cnsi, not many get a second chance.
recap.com
6) Balance sheet. Are they strapped for cash?
Check! Why they even turned a profit this quarter, so
we know the burn is not that bad. I wouldn't expect
them to have net income of course, but that I am not
worried about.
7) Buyout potential, given all of the above.
Check! I would think any of the neuro companies, or
maybe even a immune company would like to suck up tiny
cnsi...although it might not be in the long-term
interest of shareholders. They could sell out now for
a few bucks a share, but that would be easy money.
The best thing for the stock is long term sucess.
8) Analyst coverage.
Not at all. At least no coverage that I am aware of.
--MM |
