Don't preach "buy out potential" to me. I've been doing this for a long time, and most of what I buy in the biotech field is on buy out potential. There are a few thousand developmental biotech companies out there, and 99% of them are better buys then this.
I suggest that if you are interested in this field you do a little research on valuation model for these types of companies. I did an analysis on this a while back. It put the value of the company just about where it is now. But the problem is, when I did it I used a total debt of $13.5 million. Now we have been told that it is nearly 3 times that.
But you resort to the same tactics that all hypes do. You throw out some legitimate article that makes a point that you want to use, and then somehow imply the it would apply to this company. Well, good luck there.
I own two of the companies that you mentioned (HGIS and ILMN) and owned the third (AMLN) on a recommendation that someone posted here on this board. I sold it because I was up over 100%.
All three are light-years ahead of GNTA. They have revenue (one over a billion dollars a year in revenue), cash in the bank, and real products. Get this- each has a total float of less than 200 million shares. GNTA has a fully diluted float of around 45 billion. Starting to see the difference?
So I'll play your game. How much would GNTA be worth to a buyer? Well, they have one drug in PII trials. It is 3-5 years (being optimistic here) from FDA saying Yes or No. So what is it worth today, when discounting for the time value of money, and the risk of the drug not being approved? PII drugs have about a 40% chance of approval. So what is it worth? I don't have the time to look up the valuation model I did last year, but at that time I figured a share was worth around 0.005. As I pointed out above, I used a debt number far less than what the last Proxy stated. So my guess is that it would be far less.
So let's say there is a company out there willing to take the risk. They offer $100 million for the company. What is one share worth? How about 0.0022? Do the math.
And that is if you could find a buyer for a company who has a record of failed FDA submissions and who will be out of money in a few months. So if you are the CEO of an interested company, why not wait a few months and just buy it after it goes under?
Then there is the 1:25,000 reverse split coming in just two weeks. That is if the SEC and/or FINRA does not step in an stop the re-incorporation like they did the last reverse split attempt.
AI
