Innovation Pharmaceuticals Inc (IPIX)

[mantis]

Well, of course you can find a few exceptions, but counting Contingent Value does not really makes sense.
What I am saying is - each company's market cap is defined by a market - millions of active traders, thousands of investment professionals and hundreds of analysts. Of course they all have their own opinion about valuation , but in a process of trading the value of the company gets to some median point.
And if tomorrow some BP decides that it would rather snatch the small pharma today before it becomes too expensive ( after some trials results ) , and it pays a hefty premium - it all makes sense. But if it thinks that the company worth 10-20 times more than its current value then it raises some question:
- is everyone else blind not to see it ? If one BP is eager to pay huge premiums, the investment world usually sees it and the value goes up in advance.
- If we assume that one BP is willing to take the risk of unproven drugs while others don't then why can't they buy the company for 2-3-4-5 times the value instead of 10-20 ?

Don't get me wrong - I am all for BP buying IPIX for billions , we are just not at that point yet. Our intrinsic value at this point is not that far from out market value of 100 million.