Avid Bioservices Inc (CDMO)

[jakedogman1]

The enhaze program with Halo could explode in the not too distant future....

https://s21.q4cdn.com/250105458/files/doc_presentations/2019/HALO-010919-JPM_FINALv2.pdf

CDMO mgmt wants to diversify client base to reduce risk which would put a limit on a client wanting to do biz... not a good problem to have cause it forces a client to look elsewhere and one could lose the biz if the new source could take all the biz.... but another bigger CDMO would not have that problem with diversification and would love that biz...

So what avenue is best for getting risk adjusted value? My guess is someone ie acquirer will pay discounted value on a teed up deal with predictable and measurable dcf... if the demand for enhaze is strong and CDMO is in a position to capture this biz then the SP at $3.70 is undervalued... how much impact on value does a Lias situation have in the above scenario? not much given the replacement has a better resume...

Hopefully we have some smart folks at the helm that can get the best risk adjusted value... Tappan, Ronin etc will know when to hold em and fold em because they want to make a bunch of money... For once I am comfortable having a good BOD where the entire 7 member bod is cheaper than one member of the previous bod with 100 times the experience.