Replies to post #377691 on Innovation Pharmaceuticals Inc (IPIX)

[L vus]

Loanranger, you are fair as you stated so eloquently, "How much a suitor might spend on an acquisition has nothing to do with how much the candidate raised, especially if it only has a teeny weeny bit of it left. Other metrics having to do with estimated future income and resultant cash flows are the primary drivers of the price." I challenge anyone to dispute this and I'm shocked that smoke and mirrors are being posted by some that I looked up to.

[Lemoncat]

How much a suitor might spend on an acquisition has nothing to do with how much the candidate raised, especially if it only has a teeny weeny bit of it left. Other metrics having to do with estimated future income and resultant cash flows are the primary drivers of the price.

All true. I think the sentiment was:

$0.23 -> $2.25 is a great buyout.

$123M in -> $1000M out is a great buyout.

So $2.25/share would be a great buyout from a stock price perspective and from a money in/out investment perspective.

10x over 9 years is wild growth that trounces all of the major indexes and the vast majority of Fortune 500 companies. This is a return that rivals FB and TSLA over the last 9 years.

From $0.23, of course. Never mind those shares purchased at $4.00.

Go IPIX!

[MinnieM]

I agree. Future income and outlay to bring to market are primary drivers of what a purchaser is/would be willing to pay.








Message in reply to: BOLDED
I don't think there's a need to spitball. As noted the accumulated deficit at 6/30/21 was $115M but Stockholders Equity (raised but NOT lost) was $8M so ballpark $123M was raised, not $400 million invested or closer to 200 to 300 million.

The original statement is what got my attention:
"There’s nothing wrong with 2.50 a share for a company with $400 million invested and currently trading at 1/12th the price."

How much a suitor might spend on an acquisition has nothing to do with how much the candidate raised, especially if it only has a teeny weeny bit of it left. Other metrics having to do with estimated future income and resultant cash flows are the primary drivers of the price.

[thefamilyman]

Well said.

Loanranger said,

How much a suitor might spend on an acquisition has nothing to do with how much the candidate raised, especially if it only has a teeny weeny bit of it left. Other metrics having to do with estimated future income and resultant cash flows are the primary drivers of the price.