Replies to post #2308 on Biotech Values

[rwwine]

Market cap comparison

I find it unbelievable that the market cap of EYET continues to go up and is now 1.79 Billion while GENR remains only (1/10) of EYET at 186 Million.

I am actually feeling sorry for those folks that think they are getting such a great deal purchasing EYET at $44/share.

[DewDiligence]

EYET’s astonishing valuation:

>> You said the shares outstanding are much higher than yahoo is listing. What are you showing? I have 40.4M. <<

rkrw: For valuation purposes, I add in EYET’s 5.7M options, which have an average exercise price of only $7.49, according to the company’s SEC filings. Added to the 40.3M actual shares outstanding at 3/31/04, these options give a fully-diluted share count of 46M and make EYET’s fully-diluted market cap an astonishing $2.0B.

Please note that this 46M fully-diluted share count excludes 0.4M shares of treasury stock and 3.8M shares reserved for grants under the ESOP and management incentive plan. It’s reasonable to assume that these additional 4.2M shares will eventually become shares outstanding.

No matter how you look at it, EYET’s valuation is huge. The VC’s and insiders evidently agree --they just cashed out $150M worth of stock this week in a secondary offering.

When the lockup on open-market sales expires this summer, you can expect insider sales to reach deluge proportions. The CEO and two other top insiders already established 10b5-1 selling plans.