Crescita Therapeutics Inc T.CTX

Net-Net Stock - cheap stock

[stef1234]

I recently bought this company.

Pretty cheap stock by any standard.  Looks very similar to CPH, IBT and MPH pharma plays.  Management has began the turnaround, so Revenue and Profit should trend higher Y-o-Y.

In a nutshell, as of August 12 2023 :
- EV : 4M$
- Market Cap : 14 M$
- No Debt
- Cash per share : 0.50$ (10.2M$)
- Ebitda : 1.9M$ (TTM)
- EV/Enitda : 2.1x
- Net Current Asset Value (net net stock) : 0.73$ / share
- Book Value per share : 1.01$
- EPS : positive, trending higher Y-O-Y
- Stock Price : 0.70$ per share
 

We will see what will happen, however I believe the downside is very limited.

GLTA !

[lscfa]

working capital $0.75/sh

[drewmumaw]

"...I believe the downside is very limited." Agreed. But the upside appears very limited too. Current management can’t seem to find a way to grow the business. Their compensation seems way too high for such a small cap company. The high cash, low debt balance sheet is favorable, but operating income has essentially been flat over the previous 4-5 quarters. If the company is such a

[stef1234]

I agree totally with your comments Drewmumaw.  You nailed down the issue with this company.  As Warren Buffet said it many times, we can't as a passive investor replace a management team and the stock may continue to languish for a while.  That's true. However, I have been investing in stock market for many decades now, and I can tell you that reversion to the mean is a

[drewmumaw]

So much for the down side being limited. Disastrous Q3 results released today.

[daydream1]

Management knew a while ago the Taro deal was done and dead. There was no proactive steps taken by them at all. This company is done, cash will only evaporates over time. The only outcome is for them to sell ctx.