I am new to investing in penny stocks, however I am not new ti investing. Actually I make my live as an Financial Advisor. Buying penny stock is a lot different from what I do for my clients. When you buy a penny stock you can't base the purchase decision on earnings or dividends or even sales forecast. In most case they have zeros in all of those columns! I believe you have to look at, as in our case, the patients or the drug they are developing. Is it being proven that it works and does what the developers are saying it should do. Even if it works is there a market for the drug and what would the price point be? How do we finance the company until we get to market?
In our case I like the Doctors who are working on this drug. I believe in them as much as I believe in the drug. Next the drug they are developing has great market. 600,000 new case per year. From what I have seen this drug is taken in 6 doses. If we get a 10% penetration, and I think that is low then that is 360,000 does per year. The competition drug costs for Zytiga is about $60,000 per year Jevtana is $96,000 per year and Provenge is $93,000 per year and these drugs just keep it in check! So if our can eliminate the cancer is six dose what would you pay? I have no clue how this drug will be priced but if we just the average for these three drug then I would think the price would be about $13,800 per dose and $83,000 for the full treatment. Using those numbers then we could expect the sales on the low side of 10% market penetration to be $29,880,000,000.00 per year! If you divide that by the 500,000,000.00 share out standing then that would equate to $58 per share is sales! Now that's not profit it's sales But that is still a huge Number if we only get a 10% penetration!
We still have to get through Phase 2 and Phase 3. I expect to see the company use a lot of the authorized shares to fund the cost of research and dilute our ownership, but I assumed is the numbers above they would use ALL of authorized share to get us over the finish line!
This is just my thoughts on the how this could go and why I am still buying shares. It doesn't mean I am right or the company doesn't fold up tomorrow. But when you watch the video of how this has changed peoples life in the testing phase its hard not to see how this doesn't make it through and become a life changing drug for patients and investors.
