Avid Bioservices Inc (CDMO)

[sulaco]

Lias' presentation can calm the Ronin-bears


20x EBITDA? And projected Avid earnings $100 million? Whoa.
That's 2 Billion right there and gives a share price of $44.
Not "astronomical", but likely to turn a few frowns into smiles.

Lias' slide #4 states sale of IP offers "potential upside for stockholders."

More observations:

1 - Myford has capacity to go to (9!) 2000 liter tanks (slide 15). The "butterfly layout" can handle it. Double whoa. Obviously, if AvidBio runs (9) 2000 L tanks, the stock price won't be 4 bucks.

2 - A quick look at the BOD short bios (slide 10) shows 5 CEOs and an EVP. Why have they chosen to sign on at CDMO? Why?

3 - The CDMO sector is consolidating and the last 2016 estimate put it at a $62 Billion industry. Probably $100 billion in 5 years+ as biopharma moves increasingly to biologics.

Now, wouldn't it be funny if the real shareholder value comes from an industry buyout of AVID and not Bavi?

Really. The Big Boys will find it easier to bring a stand-alone CDMO into their house, then build one themselves. Buyout. Avid Buyout. It could very well be the long-term plan. All along.

Build it up, then sell at a premium.

It all adds up to shareholder value. Ronin has serious skin in the game. Take a deep breath. We're moving in the right direction. Big time.


Best,

Joe Six Pack