Ayala Pharmaceuticals Inc (ADXS)

[Meishairwin]

fbg0316, you say, "Meishairwin, you mentioned investors really don't care if they are down now on their ADXS investment. So Fidelity bought back in August/September at $13.50 and are down close to 40%. I don't see how they would be pleased with how much the stock has gone down."

You need to understand how professional investors operate. If Fidelity had invested in a money center bank and its pps had dropped 40% in 7 months they would be really concerned; in fact, I'm sure they would have sold out long before that amount of price erosion.

But, when investing in small, pre-revenue biotechs, investors like Fidelity, Adage, Broadfin, and BlackRock are quite aware of the possibility that share price will fluctuate widely between when they make their investment and the point in time when the results that investment is supposed to generate show their value in the pps (which is often 2-3 years, or more).

What these institutions care about when investing in high risk/ high return companies is not pps in the interim between investment and result, but tangible product development progress that suggests the capital they invested is being employed effectively. I would submit to you that there is plenty of evidence DOC is using capital wisely because he is producing great product development results (as well as constantly looking to raise more funds).