Momenta Pharmaceuticals, Inc. (MNTA)

[10nisman]

If the end is a pps of at least twice t he current value, what's a couple of bucks for insurance ? Beside mnta price has been acting like crap. I am no believer in conspiracy and I do firmly believe in the short term pps is strictly set at the margin by retailers' action.

Who cares about the price action - I can give you a long list of companies that have acted in a similar fashion that are also high quality companies. The risk is MNTA announces material news and you miss your chance at buying in a couple bucks higher (buyout, mC FDA Approval, FOB news, etc.). For example, MNTA traded down significantly the 30 days prior to receiving mL approval and thus anybody scared out of the stock missed a large move. Unlike mL, if MNTA receives FDA approval for mC it won't be going to $26 and losing half its value. I understand being risk averse however MNTA's intrinsic value is not tied to the economy and thus one should realize at the current $15.90 price you're only paying $8.90/share for the business (as MNTA has approximately $7/share of net cash). Thus on a market capitalization (net of cash) MNTA is being valued at $475M.