Stellar Biotechnologies, Inc V.KLH

The reason share consolidations often don't work....

[ledrog]

The reason you'll often see a stock struggle after a reverse split is because consolidating shares treats a sympton, not the disease itself.  The disease of course is a lack of investor confidence, that's what causes a company's share price to erode.  Over the past year KLH has seen its share price cut in half....that does not happen when investor confidence is high.  

Just turning 10 shares into 1 to boost the PPS.....does nothing to address the lack of investor confidence that caused the PPS to fall in the first place.

[invertedhammer]

Could it be that investor confidence is high on KLH but also wise? That is to say... they believe it will succeed but it needs more time. If Stellar proves that they can control the growth and production of the KLH molecule on a mass scale and immunotherapies utilizing KLH in their clinical trials are proven successful and receive FDA approval... it's off to the races. No?

[PaleRider22]

The Pacific Ocean does a fine job of producing the KLH molecule on a mass scale...

[invertedhammer]

No, the pacific ocean does just fine at providing a breeding ground for the Giant Keyhole Limpet; it doesn't extract the molecule from them nor does it monitor their existential risk. The feds do that. Sustainability is important! If everyone was allowed to walk down to the ocean and fill up their dump trucks with snails, I think we would risk extinction. Not a good outcome. Isn't that

[waitingstill]

invertedhammer - from what I have read, you are correct. I also think that Stellar has a facility to farm the mollusks as well. Somehow, they need to get the demand up for the molecule though.

[invertedhammer]

Yes, I believe you're right, waitingstill. Stellar has a farming and production facility in operation already. However, from what I understand, Stellar, together with Ostiones Guerrero, will build a new facility just outside San Quintin, which will be conveniently located to where the limpets are captured. Apparently, Ostiones Guerrero is licensed to pull 12 metric tons of giant keyhole

[ledrog]

That might happen....and it might not. However given the direction of the pps over the year or so...taking it from over $2 (pre RS) to under a buck now (again pre consolidation prices) it would seem your opinion is in oppostion to what the market has been saying.   There was a bit of a bump in anticipation of the Nasdaq application....but post split the PPS is heading down agian.  I