Amarin Corp Plc (AMRN)

[Crikker]

Ragman, I agree with you. Not owning the production facilities only enhances the value of the company assuming they have stable vendors under contract and more than one so they can’t be held hostage to pricing or company specific supply issues.

There are different methods to value companies, but one like AMRN will be valued as a multiple of cash flow. Not having money ties up in expensive production facilities only increases their value. Lower overhead costs = higher cash flow. Also makes other accounting ratios such as ROE and ROCE (return on equity, return on capital employed) look better.

May want to google the “DuPont Equation” to learn more on some of these issues.