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Biotech / Medical
Biotech for less than cash value
An SI Board Since April 2002
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Emcee:  RWReeves Type:  Unmoderated
At market bottoms in the land of Biotech stocks, a rather odd phenomena occurs. Some, indeed many, stocks which move so much on "story" and so little on actual financial analysis, sell for very, very little money. Now just cheap is not enough for us. Nay, we want value. Extreme value. We want candidates selling for less than cash in the bank, for less than liquidation value preferably

Old timers who remember the previous market bottoms will often share with wonder stories- (indeed fantasies of buying control of a stock for less than cash and selling off the assets) situations where there was some reasonable value of the technology, no impossibly large liability, and yet more cash per share than the market price. Sometimes these companies prove irresistable to other BTs or pharmas in mergers and takeovers. Sometimes the market "comes to it's senses". Other times they had a fatal flaw and could not recover from the spiral and the cash was burned to no avail.

Now this is another no-man's land where one should not wander carelessly. These represent very speculative investments by their nature and you MUST take responsibility for your own investment decisions and do your own analysis.

With that, I invite discussion and nominations of candidate biotechs selling currently for less than cash or liquidation value and will be putting some into a model portfolio.

Please don't use the forum for pumping a stock- and provide as much of a reasoned analysis or link to hard data as possible. This forum is un-moderated, you have only your credibility at risk by pumping one way or the other. Disclosure of interest is strongly encouraged.

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683Market size addressed here, also from Matt..... mattbiotech.substack.comscaram(o)uche-April 3
682We usually look for negative EVs after a prolonged sector drought. But we'vscaram(o)uche-April 3
681They are all so beaten down. I'm sure in five years they'll be so many, JamesK-10/30/2023
680Fate is interesting. I was tempted before the sell-off. It’s working on exciA.J. Mullen110/29/2023
679FATE is another one that experienced a large loss after attaining a huge market JamesK-10/28/2023
678One that makes your list due to its decline is KOD. Has like cash 4 times marketJamesK-10/23/2023
677Thanks! Great list. When I did sort the list (by an estimate of cash/ market-capArea51-2/6/2023
676On topic, follow this link (hope it works!) and be sure to follow the link in Wiscaram(o)uche-2/3/2023
675From the list I own CRDF and CRIS. Needless to say, I've gotten killed on boBladerunner1711/16/2023
674I've unlocked the 'Less Than Cash' workbook so you can download it tbmaz00121/11/2023
673Thanks. Do you (or other thread followers) have some favorites per chance? SometArea51-1/11/2023
672Here you go. Happy trading. Below Cash as of 2023-01-06bmaz00131/9/2023
671I looked at 3 I have small positions in: (TL = total Liabilities) (cash-TL)/ Area51-1/6/2023
670That was a nice list you did last year (although I suspect most people buying frArea5111/6/2023
669Immunic (IMUX) dropped 78% today to $2.04, which takes its cap to less than cashA.J. Mullen110/21/2022
668A pyrrhic victory!rkrw-10/3/2022
667The 667% premium is the highest I've ever seen in a biotech buyout, but it&#DewDiligence_on_SI110/3/2022
666Miracles can happen, #11 on the list, LOGC acquired by AZN at a 600%+ premium, brkrw110/3/2022
665Median name was down 50.2% on the year as of that cut, with very few stocks up orkrw-9/27/2022
664Oh my gosh! Look at how bad it is now compared to January; Message 33681925 GotSteve Lokness-9/27/2022
663Below is through 9/23. Bladerunner has kindly volunteered to contribute and alphrkrw49/27/2022
662What are the latest stats for companies trading for less than cash? AlphabeticaBladerunner17-9/26/2022
661NVTA is interesting. Nearly $900m cash but the free cash flow is $-617m. The maA.J. Mullen-5/23/2022
660NWBO: the market cap was a surprise given it's (now) trading for pennies, buA.J. Mullen-5/11/2022
659That was more timely than I could have known on NWBO :) Negative tech value learkrw25/10/2022
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