GTC Biotherapeutics (fka GTCB)

[St_armands_man]

Why now...?

Like everyone else, I'm a bit surprised by today's action. While I don't like dilution, I'm still focused on what this company can become over the next couple of years.

As for "why now", and not after, a partnership agreement, the likely answer is that GTCB was getting squeezed by a potential partner(s). If the partner was negotiating knowing that the company has a short term cash issue, they were probably leveraging it to the hilt to drive the best deal possible (for them...not GTCB). This cash infusion buys time to either look at alternative partners, or simply buy time to negotiate the best possible deal.

The general concensus with many on this board is that the company should have a market value of at least $300-$400M. The intellectual property rights alone have significant value. The only real issue is having the cash to get through the next year or so and insure that there are partnerships in place to help fund on-going activities. Even with today's deal, the outstanding share count for valuation purposes would be under 125M (with all warrants counted). At a value of $350M, it creates a share value of $2.80.

To sum it up, there is still a lot of opportunity in this stock over the next 1-2 years.