PharmaCyte Biotech Inc (PMCB)

[Peacefulwendy]

OTC Biotech investment 101. Longs know the risks but we have also determined that, for us, the potential rewards outweigh the risks. Ours is a math of valuation that has not been achieved yet. IMO, the value of CiaB technology, when proven, will still add up to multiple dollars which makes dilution for me, less of a concern...

Keay Nakae said The following in an interview. He also gave us a 70% buy rating...

TLSR: I'm going to ask this next question specifically because you follow both micro-cap and small-cap stocks. Micro-cap names may not be very reactive to catalysts, even though the catalysts might be very positive. Many micro-cap biotech and specialty pharma stocks have significantly lagged this two-year biotech bull market. I'm wondering if you can venture an opinion as to why these micro caps are not following the lead of small-, mid- and large-cap biotech stocks.

KN: The lag time has to do with both the micro caps' investor base, and also with what their future funding requirements are going to be.
Let's say you have a company working on a product, and let's say it has some positive preclinical data. The developer is still going to have to go through phase 1, phase 2 and phase 3 studies, so we know the pathway required to get that drug approved. But at step one the developer is still a long way off, and there is a lot of work that needs to be funded. The market knows that the company is going to need additional capital. In most cases it is too early to talk about partnering at this stage, so the developer has to go it alone. Hence, the need at some point to raise additional cash, which means further dilution, which represents an overhang on the stock.

http://www.pharmacytebiotech.com/wp-content/uploads/2015/08/Chardan-Capital-Analyst-Report-2015-08-03.pdf

http://wire.kapitall.com/investment-idea/four-small-cap-growth-names-different-value-drivers-keay-nakae/