Innovation Pharmaceuticals Inc (IPIX)

[TimetoRetire]

In laymen's terms-

I desire to buy a new home so I put my very expensive vehicle up for sale. In recent news, the very expensive vehicle had 12 recalls which reduced the market value of the vehicle by 50%. Now when I sell the very expensive vehicle(same vehicle mind you) I'm losing 50% of what I would of received before "bad news hit the market". examples -

sell vehicle when market is great - $125,000

sell vehicle when market cap is horrible - $65,000

when the market cap is great I have $125,000 to put towards my new home.

when market cap is bad I have $65,000 towards my new home.

So, same vehicle but because the market has decreased its value by %50 they now see the vehicle as risky, well that leaves me with less equity when I sell said vehicle.


Now use these examples(In the biotech industry where cash burn is high and necessary) and repeat several times over and you can begin to see the damage..