Innovation Pharmaceuticals Inc (IPIX)

[frrol]

Would be a red flag for me too. Btw, while it is true that Management is best informed on its compounds' prospects, it is not necessarily the best judge. This is not an easy concept to grasp, but people forget about things like anchoring, confirmation bias and overconfidence bias. Management will naturally, and too often, fall victim to it. Especially when it is their life work and personal fortune at stake.

In fact, no one is the "best", not even the most objective, knowledgeable, professional industry analyst; they won't necessarily be covering the company and niche indications or treatments or science as closely as some private investors. Yet said private investors might not have the pro's finance training or industry perspective.

So, who to listen to? All of them: management, pro analysts, and other investors. Plus do your own independent DD. Then you decide on your investment position. This is not perfect, but investing never is. It involves risk.