Intellipharmaceutics International Inc. (IPCI)

[fred198484]

Low cash is definitely a negative for the stock. At the same time, it is hard to see how they run out of cash, especially now. So, while this is a negative, it likely is becoming less of a negative each day. The ATM dilution is way less than the dilution you would get with a larger offering right now so it is hard to argue with the company using that option to bridge them to the place where they are cash flow positive. And the use of the ATM should be slowing in Q3 if not halted altogether. The alternative in the last couple of years was to just go belly-up which I think all can agree would have been really dumb given what potential their drugs have.

It would be great if we already had a partnership in place for Rexista and I suspect many like me thought we would by now. In fact we thought they would a long time ago. We do know that the delay can't be more than 30 months, but that is along time. so, the inability to project revenues fro Rexista anytime soon is a real negative as well. But, as you are aware, that is likely to be cleared up much before 30 months, either through a settlement with Purdue or by the lawsuit being completed well before 30 months (Collegium's lawsuit with Purdue lasted only 6 months someone else has mentioned here previously). So, there is definitely room for positive surprises on that front.

Charts are pretty much useless as many an academic study has shown, so I don't count that as a negative.

Offsetting all that is any number of positive developments. While IPCI is not risk free, it sure looks a lot better now than it has in a long time. While there are risks, the return side of the equation looks very interesting as well, which is why I imagine you have a position again.