Replies to post #1858 on Repros Therapeutics, Inc. (RPRX)

[Bio_pete]

Zip, I originally mentioned the split since the lack of liquidity seems to scare off the retail investor. I hate watching the stock move 7% on 20K shares. If you've got a sizable position then it wears you out no matter how positive you are on the pipeline.

If you compare the value of early stage biotechs then the market caps are based more on the number of shares then the pipelines potential in my opinion.

[docbanker]

Zip you're a smart guy but I think some tenure on the buy-side would help your understanding. I think if you had larger sums of money to put to work under at times artificial timelines for performance, you would at times narrow your "eligible" investable company focus and would appreciate liquidity in names you loved fundamentally.

[exwannabe]

Conditions are different now wrt splits.

When I was a kid, you had to trade in 100s blocks or pay a huge commission. Therfore when stock prices went over $100 or so it put it out of reach of many common investors.

This is largly gone now (except with Berkshire Hathway class A shares), but some people still think that some stocks are "too expensive" based on share price alone.

Yes, stock splits today should have 0 effect, but they still do have some for irrational reasons.

On the other hand, liquidity issues are quite real. If a company trades $100k of shares a day, I certainly don't want to be $30k worth knowing I couldn't get in/out without a market penalty. But this issue is not effected by splits.