BioExx Specialty Proteins Ltd BIXZF

RE: RE: 1.25 is realistic

[newcomer21]

Share price is based on several factors and hype is one of them. Speculative hype associated with a discovery of a novel therapeutic drug, for instance, that has yet to be proven in clinical trials. People are willing to speculate, sometimes wildly and recklessly. 

There is far less glamor associated with manufacturing because the purpose of the company is not oriented towards the discovery of something novel, but the development of something that is known, into a profitable venture. Less glamor means less speculation as the experienced investors carefully weigh the risks and rewards using a more conservative proforma.

The big question is, can the company take their pilot production model into full mass production without losing quality using a production process and method that leads to healthy margins? This question cannot be answered for several months and, in the mean time, 1.25 is a realistic figure, especially considering the dilution that has already occurred. There are 158 million shares outstanding. 1.25 is supportive of forward annual earnings of 8 cents per share at 15 times earnings for 2011-12.

The current price is below the 200 day moving average. It is time to go for the humble hair cut because there is nothing holding the price up at this level.

Just don't say you weren't warned.