Titan Medical Inc (TMDIF)

[QuidWilson]

Your intuition is correct, market comparison is one of the two main valuation methods, so theoretically an expansion in yhe market sector would be reflected in titans valuation. But there are a number of conilsiderations that would discount Titans relative valuation: no cash flows or proven business model (can the company run efficiently and provide dividends and dividend growth? What is PE?), product longevity unproven in the market, ambiguity around suppliers, and of course the big one is no FDA clearance at present. Im sure there are many ive glossed over which others will point out. But its not unreasonable to weigh the sector growth in the valuation calculation. I personally believe the sentiment on a buyout at this point is a bit optimistic. I think we would be lucky to breach $ 1B pre-FDA. Bloomberg analysts place a buyout valuayion at $500M usd as of thueaday. Post FDA our prospects look brighter. But what do I know? Mc seems to be a wizzard I'm sure he can and will squeeze as much value out of an acquisition as anyone could.