TSXV:BTI.H - Post by User
Comment by
darniton Jan 26, 2015 9:39pm
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Post# 23365965
RE:RE:RE:RE:RE:RE:RE:RE:RE:And down she goes again....
RE:RE:RE:RE:RE:RE:RE:RE:RE:And down she goes again....
Love, the following Cut and Paste info, although extremely generic (I delete all references to a specific company), should be somewhat informative: Long term, deep pocketed, shareholder support is key for a developmental stage biotech's survival and success. Most biotech start as small OTC traded "penny stock" companies living hand to mouth on the whims of mom and pop retail investors dreaming of winning the stock market lottery. It is rare to find a developmental stage biotech, particularly in the cutting edge space, with strong "institutional" backing and an experienced board to match. In the world of microcap biotech investing, poor capital structures/financing and weak board oversight often trumps good science. As a biotech investor, I am comforted when an institutional investor takes a position alongside mine. However, all institutional investors are not created equal. A number of funds take a position as part of a diversified portfolio strategy based on a shotgun approach while others perform a deeper analysis of the company and its prospects and take an active role in the company's success through board appointments. These activist investors play a key role in balancing the goals of management with the interests of shareholders. Needless to say, in addition to the science, my analysis of a potential biotech investment always includes due diligence around the company's finances, key management, and its board of directors.