Opinions
Bruce Campbell (2)
Prometic Life Sciences Inc.
PLI-T
PARTIAL BUY
Dec 10, 2014
Stock price when the opinion was issued
You might be interested:
He believes this has been very volatile due to an overhang and the potential need for more financing. It is stabilizing now and they have received an investment from the Thompson family. He thinks they should begin to receive approval soon with sales later this year. They do not own it presently, although they have held it in the past.
He is short this company presently. The market cap is quite high compared to his estimate of value. The company appears to be quite promotional compared to others. Their plasma protein product is easy to get through the FDA and subject to hype at each easy approval stage. He does not see revenues and earnings to back it up.
They have patents on plasma protein drugs that are interesting. The company had significant success pushing these through the FDA stages but they recently ran into a delay and the stock dropped precipitously. He has been short for a while thinking the market cap was overvalued for the ultimate end market they were pursuing. Now that the stock has dropped so much, his short position is smaller. This is a highly speculative position.
Stock tends to be very volatile and can have $.40-$.50 swings in the share price pretty routinely. If he didn’t own it, he would probably take a piece here, and would look to add another piece on either a pullback or any significant type of news. Just did a financing which is a great move from management’s perspective, in that now they shore up for all the trials they are going to do. Have a number of different orphan drugs. This $25 million plus the cash they have on hand, helps to really smooth things out. Their base plasma business revenue tends to be a little bit lumpy, as drug companies order from them and build their supplies up. If you don’t own, consider taking a position here and adding more on either a pullback or more positive news.