Alright, even though it’s nobody’s business, I always like to be transparent about my trades when I encouraged people to buy a stock that I ended up selling for a price lower than I originally expected.
I bought in at $0.98 on my personal account and sold for $1.45 this morning. 48% in 3 weeks. Did I really believe PULM would go higher? Yes. Do I still think it will? Certainly a considerable chance. But here’s why I sold:
PULM released their registration statement. No big deal. It’s not an offering. Just talking about the ability to offer. Maybe necessary for a partnership? PULM looked very similar to BPTH. Both conducting Phase 2 testing on products that have been shown to have a noticeable boost in effectiveness compared to existing products, and both are aimed at a large market. So I looked deeper into their Q3 10-Q reports to compare. Both had similar financials, but BPTH did happen to have lower costs. PULM had higher assets, but counts “Goodwill” around $10,000,000, which I personally don’t respect as an asset after extended periods of time, but that’s just me.
As I continue to compare both, I start to notice that BPTH is a lot more confident in touting the progress they’ve made in clinical tests and their plans for future revenue sources. PULM didn’t really wave their progress around and wasn’t as clear-cut on their revenue plans.
I conclude BPTH’s Q3 with a “Yeah, I’m not surprised they skyrocketed recently”.
Then I read this in PULM’s: “We expect to continue to incur significant expenses and increasing operating losses for at least the next several years based on our drug development plans.”
Continued losses I could understand. BPTH, of course, noted similar concerns. But for the next several years based on drug development plans? So your current drug development isn’t far enough along to bring to market for “at LEAST the next SEVERAL years”?
OK, I had gone all this time without seeing the major red flag, and then I, unfortunately, finally found it this morning. BPTH noted no such concern. And there’s where they both take a different turn, IMO.
So GLTA. Hope it skyrockets, I really do. But it’s not a lesson I’m willing to learn one way or the other while holding the bag. I’ll take my profit and watch it from the sidelines throughout 2019 as a learning experience, but now it’s too hot for me.
