Biotech Values

[mr_o]

TRIL post mortem:

Jotting down some lessons from TRIL. The ideas may seem obvious.

Greater (and lesser) Fools: Bought TRIL as a trade at one of its 52week lows. No need to explain the greater fool theory here. Suffice to say I was the greater fool.

Drawing lines in the sand: Went in with the notion TRIL was cheap because it was at a 52wk low. That line in the same was quickly washed away. Stick to defining cheap valuations based on cash flows, or potential cash flows with a decent level of visibility.

Under funded firms: Recently had a conversation with an acquaintance who told me it is easier to raise 100 million than 20 million. Reason being, less need for future dilution and the company can operate from a position of strength. TRIL, obviously was operating from a fragile position. No more fragile companies.

Im sure there are other ideas to be had, these are just quick notes.