Opinions
Bruce Campbell (2)
Prometic Life Sciences Inc.
PLI-T
COMMENT
Mar 10, 2017
Stock price when the opinion was issued
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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.
Unless you have a really long term time horizon, you want to be pretty active in trading this. It tends to be volatile. It is probably currently at a time where you could Buy for the next trade up. There are going to be a lot of catalysts this year. It seemed to sell off hard late last year and early this year, and has bottomed and starting to move up. There will be a ton of news flow on this company. They are going to need to raise more money. Probably fully funded out until later this year or early next year, but at that point, they may have a drug approval, a royalty deal, etc., which might not necessarily come from an equity issue. They have a number of different irons in the fire and there are 3 or 4 that could be global blockbuster drugs. There is lots of opportunity long term, so you want to watch it, manage your position size, and trade around that.