RE:Major deal transactionsmasila, thanks for this perspective. I have not yet had a chance to review the link but your points wring true.
In an entirely unrelated business, social media marketing and digital marketing I'm seeing huge valuations on businesses like Twitter (monthly user log in of 288 million) with a market valuation of $26 billion but it is unprofitable and it's rate or growth (new sign ups) is declining. Shareholders are unhappy.
Even Uber and airbnb have huge bases of users but are still in the mode of trying to make money. These seem to me to be more viable and will work out their bugs but they are already being attacked from competitors and the regulatory markets.
We all know how these companies when they are private get their valuations - private investors (big ones like Google, etc) buying a small number of shares at an agreed subjective price which is then multiplied by the size of the private float to create the valuation...all in prep for the IPO.
So I understand, with the risk of biomed stocks, and the binary end point of trial results to the stock market why share prices are underestimated.
But it sure is frustrating to me to see such important ventures as biomed are undervalued compared to something as frivolous and fleeting as social media.
Just thinking out loud again. Sex appeal wins the day.
Cheers
Toinv