Cocrystal Pharma Inc (COCP)

[Minding]

Since my July sale of half my COCP shares, I've been keeping an eye on company news and the stock price. There has been precious little news and the price has continued to retreat.

My gauge for quickly checking the value of biotechs is their market cap. In my July comment(s) I expressed a discomfort with COCP having a market cap close to $1B. Since there's been no change in outstanding shares, as the price drops so too does the market cap. Currently COCP's market cap is 606M, closer to my comfort zone; that is, I believe they are fully valued in this price range.

Normally I do not consider a company that is fully valued to be a 'Buy'. Once a company reaches full value it needs time to build for the next ramp upward.

As a Frost stock distantly related to OPK, COCP is an anomaly. This is, IMO, mainly because momentum traders get involved. But I try not to ride momentum for momentum's sake alone. It's also an anomaly because Frost is a clever companies architect. He mixes and matches to best take advantage of strengths and to strengthen weaknesses. The concern is of being left behind when he makes an adept move.

The net result of all this thinking is that the stock has entered a zone where I am willing to double my shares ... though my preference is to now wait for the stock to base for at least a few months (which I believe it will do.)

That's my story and I'm sticking to it ... for now.

Kind regards,
Minding