Rock Creek Pharmaceuticals Inc. (fka RCPIQ)

[Thales622]

Just so you know where I'm coming from...

I use the product, its really very good. Has totally helped with pains in my fists from boxing (I'm 43, boxed for years but the pains in my hands and knees came only recently).

A bond earns something called a yield, so you buy it for 100 and it gives 2% in a year say. In this case you say the yield of the bond is 2.

You can compare equities in the same way, its called the earnings yield. So if you buy a stock at 100 and it returns 2 profit plus your initial investment after a year (102) then its called a 2% earnings yield same as the bond.

So what is STSI worth? Well they are not making any profit yet, so you can't calculate the earnings because they are still making a loss. But the financial information tells you about the earnings and also losses per share because the EPS (earnings per share) can be negative. Right now they are making a loss per share of about .05, so thats the same as -0.05. I think if you calculate it this is something like a 1/3% los per year - (1.5-.05)/1.50

So right now according to earnings, STSI is running at a loss, however if you look at their financial statements you can see where the money is going.

So in the last quarter, their sales are up but also their marketing costs were up but they stated:

"Sales and Marketing expenses were approximately $3.1 million for the three months ended March 31, 2013, an increase of approximately $2.1 million, or 203.0%, from approximately $1.0 million for the same period in 2012. The increase in marketing expense was attributable to the expanded promotion of our Anatabloc ® dietary supplement. We expect our sales and marketing expenses to trend lower in the near-term, as our sales and marketing efforts related to our Anatabloc® dietary supplement level out."
http://www.sec.gov/Archives/edgar/data/776008/000114420413027785/v343171_10q.htm

So, all you have to look at in the financial statements is something called the cost of goods sold. Initially, you need to pay for advertising but when it gets established and word of mouth kicks in the marketing costs will go down and the sales will go up.

Now, their sales are not seasonal (because you use the product all the time), so you can make a quarter by quarter comparison as opposed to year on year.

The next quarter is crucial. If the sales are up and the marketing expenses are down then the product is selling itself and it will just catch on. It might take 1-2 years to get the maximum profit.

But once it gets a profit it will get compared against the bond yield, maybe something against health care in general and possible future sales and that speculation will make it go much higher. If it were to make say .05 profit instead of .05 loss then the price would be maybe 13 times higher