Amarin Corp Plc (AMRN)

[Crikker]

Strikes me more as irrational market exuberance for these types of stocks than morality. Remember, they get a % of funds raised. Why would they want to make less?

The market can be irrational on some of these IPOs. No matter what multiples, valuations or valuation models are applied the market just goes crazy and bids the price significantly higher than it should be. Happened often back in 1999/2000.

How could any investment banker justify an $11 billion market cap with a company that has $20 million in sales. That is sales, not profits. I never would have been able to justify this even if I was working with the highest of moral motivations. What kind of discount rates and cash flows must this company achieve in order to justify a present value of $11 billion? Seems crazy to me.