Biotech Values

[DewDiligence]

[OT NFI] It’s amusing for an analyst to have a price
target of zero, but it’s not especially courageous. As
of 9/30/07, shareholders’ equity was negative $80M.
Then there’s this:

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As of September 30, 2007, the company was out of compliance with the net worth covenant in its financing facilities with Wachovia. The company has obtained a waiver of this non-compliance through November 30, 2007, and intends to repay all outstanding indebtedness to Wachovia as soon as practicable. The company expects to be out of compliance with the net worth covenant subsequent to November 30, 2007, and there can be no assurance that the company will be able to obtain additional waivers or amendments from Wachovia or that it will be able to repay its outstanding indebtedness to Wachovia.
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In other words, NFI shareholders will likely end up with nothing when this dog is recapitalized.