I took a heavy position last November and put the stock away. I've been in other biotechs and have learned that you have to sit with them for several years. When I read that interview last night however, I got excited and I decided to increase my investment. Even though I had a big position already, I bumped it up 50% today at the open. I thought it might open much higher than it did and I was prepared to pay up to 4.00. If it had opened higher than that then I was just planning to wait for a setback. As it ended up, the most I paid was 3.45.
I became more excited because there seems to be a change in tone at Dimethaid. Somebody mentioned there is a new person in IR. That may have been done to give Peter more time to do some PR with the institutions instead of spending all his time talking to us wee folk from SI. Peter mentioned that they expect to do an offering in conjunction with a Nasdaq listing. The company realizes that they can't get the attention of US investors by just listing the shares there. If they are going to do a significant offering, you can bet they don't want to do it anywhere near the current price. That is why Peter will be spending more time talking up the company and, with a story this good, people will listen.
When it was reported that Rebeccah had said at the annual meeting that they expected a JV announcement by fiscal year end, I yawned. I've heard such claims before. You can't hold anyone to them. When I saw the announcement in the March message on the web site, I was more impressed but I still didn't think it was anything to get excited about. When I hear the same thing with only 3 weeks to go in May, I sit up and take notice. There is very little wiggle room left. If they weren't very sure, they'd be talking Summer by now. Remember, there has not been a lot of hype from company management in the past.
I'm actually surprised that Peter could be as open as he was. He did everything but name the company. I think the TSE may ask the company for a statement and they are going to have to issue a news release on the state of the negotiations. Then the stock will zoom again.
Thanks to whoever sold the shares to me today. I hope it wasn't a long term shareholder from SI. My bet is that there were a lot of traders who's technical analysis told them 3.50 was the top of the range. They're going to have re-work their charts now. Tomorrow I expect to blast past the 52 week high.
If you're a newbie here, it is still very early. This stock is virtually unknown. There are no other threads for it that I am aware of. It has gotten very little press, very little analyst coverage, and I'm not aware of any newsletters recommending it (other than the Investor's Digest piece) It is nowhere near too late to buy. Even at 4.00, the market cap is only 160 million.
One other thing from the interview with Peter: He seems to believe that the FDA approval is all but done. I don't even care about Canada or Europe. There is no other topical NSAID on the U.S. market. If we get FDA approval and a U.S. JV and a Nasdaq listing, this stock will go ballistic.
BJ |
