Replies to post #249185 on Biotech Values

[DewDiligence]

The near-term trajectory of interest rates is a second-order variable. Daxxify will be printing money for many years to come. Real (i.e. inflation-adjusted) interest rates will settle at some reasonable average value during that period.

[DewDiligence]

“Blind faith” is not an apt description of what we're talking about.

[vinmantoo]

Blind faith when rates are heading to 7 is questionable advice

What makes you think interest rates are going to 7%?

[10nisman]

Yeah, slightly. I'm long Dew, theoretically, but now I need proof like the street. Blind faith when rates are heading to 7 is questionable advice, and a lot of people look up to you

jmkobers --- you're not an investor but a trader. And comparing your thinking with an investor doesn't make sense. You want some sort of "proof / certainty" so you can make some "guaranteed 5%" which not sure where you've come up with such stuff.

Investing is about buying low (focused on actual valuation compared to the intrinsic value of what you're buying). One reason why Dew has more conviction when RVNC is trading at $10 vs. $15 is because the valuation is that much cheaper compared to its potential intrinsic value (thus, he has a wider potential margin of safety). Jmkobers you're just not wired to think like an investor and would rather wait and pay $15 or $20 per share because you perceive there being less risk at those prices and in return, you miss out on 50-100% returns.

We know Daxxify works and it works very well. The Company's initial pricing strategy was flawed but they quickly revised it based on feedback received and the current strategy is likely to drive significant market share. If you believe in Daxxify and the current strategy is much better than the prior, then you should be reasonably comfortable the market is currently mispricing RVNC. Could RVNC go lower, most definitely, however, the downside vs. upside potential clearly favors longs. Also, if you're looking to generate long-term capital gains vs. your short-term trading gains, one needs to buy early when it makes sense even if the share price falls further.