RE:RE:RE:RE:RE:RE:stop lossxena555;
"Success begets success, and as we continue to see the market cap of PMN rise, we will see it on the radar screens of more institutions."
I have been pleasantly surprised at how well PMN has stood up in the last few days and since the big jump in volume and price recently. Of course we all believe it's severly undervalued anyway.
Think back a month ago when the price was 20 cents. If you were a prospective retail investor or even a large cap pharma it's pretty hard to reconcile the low price, low volume, low visibility and low interest with the story we have been telling. Either PMN really does have something and we're the only one's who have noticed or there's some flaw or problem and 20 cents is the true value.
The last few weeks seem to indicate that more and more people are becoming aware of PMN and, even more importantly, the share price resilience seems to indicate that they are holding their shares and getting onboard with the news and research.
Success begets success - exactly right.
I've been invested in PMN for a long time. Over the years I have often thought, "we've got good research and good IP so why doesn't some big pharma simply come along and buy the whole company for a couple hundred million? Does the fact that we haven't had buyout offers indicate that we don't really have what I think we have?" (This was back when the market cap was only 10-20 million, now the price would be higher.)
Of course I'm not in the business and not the Chief Aquisitions Officer at some large company so I'd don't know how it all works. My feeling as a retail investor is that the best course of action is to buy something of value at the lowest price possible. If you idenify something of value buy it right away before the price goes up. Turns out this is not how big pharmas operate.
I attended the last Annual meeting in Toronto and had some time with Eugene Williams and so I asked him those questions.
What follows is his explanation (paraphrased by me, so it may not be completely correct). Big pharma is interested in us as they might be intested in a dozen (or hundred) companies with promising products or research. The problem is that the negative consequences of making a bad aquisition is greater than the negative consequence of paying more for the ones that work out. A big company would rather wait and pay a billion dollars for something that works than take a chance on buying something for a 100 million that might not work out. Spend money on something that doesn't work out and you have to explain why you bought it, spend more money for the same thing later and nobody asks why you din't buy it sooner or cheaper.
And so we wait. Eventually some large company decide we fit in with their plans and will make some sort of offer. This may, hopefully, start a bidding war amongst other companies who have been watching and waiting. At the very least it will raise our profile and visibility and make future deals more likely to happen.