RE:RE:RE:RE:RE:Peter hodsonAll very good points, and ones that I often follow. I am a bit of a contrarian (And I have paid for it on occasion) and following the herd is most often the smart play. Hence my interest in the sector. To whit, I own a bunch of GILD. Its the only Health/Biotech I own. With the FX, I would like to compound my gains and move some of it to a canadian health company. Not yet I think, but I have time.
To counter some of your points regarding MSL
-I didn't buy at 3 bucks. And if there is a bought deal and and institution gets impatient, and a little pissed, that presents a theoretical technical wall going forward
-I don't know the portfolio's of these institutions, but a couple might see a need to Tax Loss sell on behalf of their clients.
-Also those who have held since the lows of last year, still might have a decent gain at these prices by which, given market volatility, there might be selling pressure going forward.
-I love the cash. Cash is good. But this is a growth story, and the only way they can grow is by spending that cash. And 47 million doesn't buy very much. So again, how much is that shelf prospectus worth and under which terms?
-Those who own at 3 bucks have more cash than I do (retail) to double down on their investmenst if their clients let them if that shelf prospectus comes in cheap.
-MSL needs to make an aquisition sometime. What comes first? A rise in stock price, to effectively utilize the shelf prospectus or the use of the shelf prospectus to increase the share price? That's a toughy.
These are all questions to which I have no answers. Yet. In the meantime I think there is at least another .25c in downside in the next couple months. If I am wrong, then I am happy for you and I have lost nothing. If I am right, then I have increased my share count in a company that at 1.60/1.75 I have suddenly become a believer in lol!
I appreciate your alternative reasoning. I, like you, believe very much in pills as an investment for my portfolio. Read GILD as case in point.