MRKR Market Cap 325 million, WHY?
Read post # 23920 from 6/15/18 which said combined market cap should be 300 to 350 million.
It was "billed" as a merger of "equals" when TPIV was about 60 to 100 million, that would equal a combined 200 million.
But let's say Marker was really worth more than an "equal" 100 million, HOW MUCH MORE and then also, WHY being worth more that 100 million, would they come in as "equal"?
One advantage to Marker, was this merger was an easier way to go public, rather then go through the legal and SEC regulatory route of the IPO. All they need this way was a shareholder vote. No SEC regulatory route.
OK, so HOW MUCH MORE than 100 million was Marker worth?
Now remember, in young, small biotech, value in part, is based on hype and hope.
We have ALL seen biotechs with the latest thing have SPECTACULAR phase 1 results and STELLAR phase 2 results, only to flop and die in phase 3 trials.
So, BE REAL HERE, their success is not written in stone yet.
SO, was Market worth twice as much as TPIV?
Were they worth triple of what TPIV was?
I don't think you can safely say, based on hype and hope and current trial results, that they were worth 5 times or 10 times as much as TPIV.
OK, so they weren't really worth 500 million or ONE billion.
They were worth 200 to 250 million based on what Dozens of other comparable biotechs were at the same stage, when combined with TPIV's 100 million = about 325 million.
ALSO, remember, everybody big just got to buy in at $4 a share, at a market cap of 180 million. 45 million shares X $4 = 180 million market cap.
If, like what happens when a stretched rubber band snaps back, if it gets to a market cap of 250 million, I will just buy more.
I still believe with "realistic expectations" that MRKR will be successful and have a market cap of One Billion, perhaps in the 2nd quarter of 2020.
