Hi Zeev, thanks for the comments.
<<re: COCN, when is it expected to have positive cash flow?>>
Yumpin Yiminy! Not for a lonnnngggg time, I assume- although they have a full pipeline with products in various stages of development, they are still a biotech that's far away from market. They toyed with the strategy of piggy backing a CRO onto their discovery/development efforts (whereby they contract out their services to other companies to develop their drugs which gives them cash flow to pursue their own developmental efforts), but that was just axed to save money (actually I'm glad it was so that they can concentrate on the discovery side of things).
<<If not soon, then it will have to go to the well again, will it not?>>
Oh, yeah, I think that's quite probable, but that's expected with biotechs. Of course it's always in theory possible that they get more partnerships with big pharma that eliminate this need.
<<Is there a chance for another reverse split?>>
I seriously doubt this; they're so dang small right now (< 5 million shares) that they don't have much room to do this. In fact this is their greatest problem right now, i.e. that they have now been reduced to such a small market cap that funding of any significance without severe dilution becomes questionable.
<<I like those companies after they get out from under a floorless, but sometimes, so much damage was done, at least technically, that it takes a long time to recover.>>
What I'm waiting for right now is a key partnership announcement for their epilepsy drug. I'm hoping that helps the stock nicely and dislodges the small amount of remaining convertible (if it's not gone already). They just announced a minor collaboration with Park-Davis for pre-clinical development of another product, and that moved the stock a bit, but then it settled back down to $1. In any event, the company is keeping its nose to the grind stone.
I've been waxing rhapsodic about COCN on the relevant thread, but there are serious, big ugly problems with this stock, no arguments from me there; however they have several quarters worth of cash to figure out something, the death threats (e.g. delisting) seem to have abated, and they have lots of technology (the patent portfolio alone is worth more than the current market cap, IMO).
Anaxagoras |
