GREY:MDCGF - Post by User
Comment by
amorakon Sep 23, 2008 1:51pm
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Post# 15478512
RE: Morning thought!
RE: Morning thought!I want to add one last thought. PMI's deal removes risk from MDG. I think that MDG does have a good chance to move forward some in value. But it's still preclinical and because it's preclinical, investors need potential reward in inverse proportion to the risk of failure. Since PMI may not allow that reward to materialize, the reward is no longer in proportion to the risk, not by my criteria.
It's a paradox but the removal of risk in this case actually makes the remaning risk not worth it. It's a rare circumstance, I think. Potential irrational exuberance or real momentum have been removed from this play.