Game Over First I would like to pat myself on the back because two years go I told the overzealous/overconfident penny stock investors that biotechs are crapshoots and not all drugs to make it to the market.
I was told I was an idiot and I was posting under multiple alias'. I was told why would a "large company like Endo" mess with a small biotech like BNC. I was told Endo doesn't spend money on the largest trial they have ever conducted or spent money on to not have it be a success. I was reminded time and time again that phase 2 and phase 3 results were so great that it couldn't miss and you just had to be patient and wait for the stock pop.
Go back and read my posts where I posted most drugs don't get approved and many companies spend big dollars on busted drugs....just ask pfizer.
My thoughts now are: Human Health business is garbage and worth zero. If there were ANY...ANY...ANY value to Urocidin, Endo would not have given it back. The garbage royalties is in case someone buys the drug or partners it and it would pay Endo for all their research they did.
The company is now faced with the Grim prospects of a manufacturing plant that is empty and idle. $20 million dollar loan at 15%. Numerous government loans that don't have to be paid right now but at some point have too. The company has a small slightly growing animal health business with decent margins.
The company is fairly valued and has minimal upside from here unless a rabbit like econiche starts to generate revenue.
My goal is to hope for 50 cents and sell out!
Some of you on this board are educated and already understood the prospects, this post if for the undying optimists that bet to much on this stock so they could go down to the local brewery and one day brag about this stock.
I hope your young enough to learn this lesson and profit from your next pick.
Best of luck and prosperus trading for us all in 2013.
I have been recently starting a new position in Bidu, which I think should bode well over the next few years. My avg cost is 92 for those that track and want to throw back in my face.