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drkazmd65

12/12/14 10:30 AM

#105424 RE: thefamilyman #105423

I just can't get behind the idea of stock buybacks 'YET' for NNVC.

It just makes no sense to me for a company with no current revenue stream to spend its existing cash capital to buy back shares from the market.

The conditions could change - IF sometime in the next 6 months we see an Ebolacide formulation go into production that generates an income stream. That remains a big 'If' IMO though.

For example - assuming that NNVC does buy the Shelton plant outright from Dr. Diwan - that would likely eat up about $6 MM of the existing capital in one wad. Monthly research & development expenditures are not going to cease in the meantime.

Since Flucide is even when viewed optimistically not going to hit clinical trials until after TOX testing is completed, it is extremely unlikely NNVC will see a revenue stream from a Flucide source until at least very late 2016. And that assumes that Flucide goes on the market 'somewhere' outside of the US before it jumps through all the FDA approval hoops.

A stock buyback now eats up operating capital. And this operating capital would have to be made up 'somewhere' if used up before income arrives. So you would be trading a sagging shareprice now, for dilution and a sagging shareprice later.

IMO - everything you state is a fantastic idea,.... once the company has some income.