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Re: bag8ger post# 23563

Wednesday, 04/06/2005 2:49:39 PM

Wednesday, April 06, 2005 2:49:39 PM

Post# of 82595
bag, You keep trying to simplify the relationship into flowery terms and throwaway concerns.

That the pps is a reflection of the 'value' of the company CAN be argued, although not with much vigor. You can cling to your assumptions regarding manipulation and the ensueing disconnect between the pps and the company's actual value. That however is not the subject of the discussion.

In this particular company, all revenues that fund operations come directly from the invesment community via the sale of shares. Therefore the company's existence and future depend on that income source remaining viable.

If the pps drops to the point that sufficient income cannot be derived from the sale of shares then the company cannot survive. It is as simple as that.

There is no drug pipeline if the funding cannot be extracted from investors. Investors, with the best of intentions, can only buy the available shares at the current price. If there is not enough shares or the pps is too low to enable sufficient funds to be transfered, then the pipeline stops.

regards,
frog