As a long suffering long, I hope I can maintain some level of dispassionate analysis. But again, despite all of the problems with Cortex and the possible demise of CX 717, I can’t help but believe that the valuation as of the close of business Friday is ridiculous.
Ampakines are a platform with a ton of potential. They have demonstrated some efficacy in man. And the science seems to be of interest to a number of big and mid-sized phramas in one way or another.
Yet, with a market cap of just about $44 million, and $10 million in cash, the enterprise value here of less than $35 million is astounding.
That enterprise value is representative of less than 50% of the cash that has been invested directly into the company (through stock offerings and option exercise).
That enterprise value is a fraction of what far less promising platforms with far less clinical success are getting in the private markets from venture capitalists.
That enterprise value, for a company with a drug in phase II (but with some safety concerns), another drug in phase II with a partner, and an IP estate that could hold billion dollar market potential, seems way too low.
I’m currently down well into the high-five figures on my investment here. And I understand there is risk. But either this is the buying opportunity of a lifetime, or a foolish love affair with a stock that the market can’t stand.
Thoughts on the valuation?
AI
Market Data 
Markets 
