RespireRx Pharmaceuticals Inc (fka RSPI)

[gershfinance]

After the bloodletting a few weeks ago, I held my position and decided to not look a the stock price quite so often. However, this weekend, the following hit me:

a)We have 33 million shares outstanding, and 17 million warrants with exercise prices around $2.85 or so on average.

b)We have upcoming data possible from Organon on the SZ phase II, some hope of a upward revision of the dosing for ADHD in the spring, and, if nothing else, significantly more validation of the ampakine platform than we’ve ever had before.

I can’t help but feel this stock price, and the current enterprise value of $40 million, are significantly understating the value of the platform. And, using the same metrics, a $4 per share buyout would cost the acquirer only about $140 million (33 million at $4, and 17 million at $1.15, less cash on the balance sheet).

We may have more down days ahead, but at some point, the promise of this platform and the successes it has achieved to date should result in a more substantial valuation.