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Saturday, April 17, 2010 12:05:54 PM
AEZS (1.25) - Very good points and still very undervalued.
Capital raises are almost always viewed as negative, but this one was done intelligently and was well timed and was not overly dilutive. After the offering the o/s, including the unexercised warrants, will still be under 80mm and the float will be under 60mm.
At current levels, they are only trading 2x cash per share and last quarters earnings were positive (see below). Most big pharmas trade at much higher multiples to cash. To put it in perspective, AEZS has roughly the same cash per share as KERX! AEZS is on the left, KERX on the right:
Net earnings were $12.0 million, or $0.19 per basic and diluted share, for the quarter ended December 31, 2009, compared to a net loss of $14.5 million, or $0.27 per basic and diluted share,
for the same quarter in 2008. The significant increase in net earnings is largely attributable to the significant increase in license fee revenues, combined with lower comparative R&D expenses, as discussed above, partly offset by increased SG&A expenses and depreciation and amortization charges.
Capital raises are almost always viewed as negative, but this one was done intelligently and was well timed and was not overly dilutive. After the offering the o/s, including the unexercised warrants, will still be under 80mm and the float will be under 60mm.
At current levels, they are only trading 2x cash per share and last quarters earnings were positive (see below). Most big pharmas trade at much higher multiples to cash. To put it in perspective, AEZS has roughly the same cash per share as KERX! AEZS is on the left, KERX on the right:
Net earnings were $12.0 million, or $0.19 per basic and diluted share, for the quarter ended December 31, 2009, compared to a net loss of $14.5 million, or $0.27 per basic and diluted share,
for the same quarter in 2008. The significant increase in net earnings is largely attributable to the significant increase in license fee revenues, combined with lower comparative R&D expenses, as discussed above, partly offset by increased SG&A expenses and depreciation and amortization charges.
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