Replies to post #80381 on Avid Bioservices Inc (CDMO)

[entdoc]

freethemice, agree completely. the problem is: if you think the potential of PPHM is astronomical; if I think it is enormous; can you imagine what the big players are thinking and what they can do about it (Have done) at this point. You and I will be proven right in the end. What is the best way to long-term holders to play it now? Wait and watch? Buy? Check into the ER for post-traumatic stress disorder?

[RRdog]

FTM,

Agree with your sentiments completely.

It is very important how PPHM structures the initial commercial
deals.

The potential is enormous.

Mgmt/BOD was(contrary to popular opinion) extremely competent in the way they structured and "timed" the option issuance.

The second leg of the stool was 2nd line data (and continuing data)

The third leg of the stool will be commercial transaction. I expect them to show continued competence on the initial commercial propositions. They have had a long time to think about this issue.

IMO PPHM attitude towards Avid may be changing as well. I expect Avid to move up to a 20mm rate by next conference call. They are at a 30% "accounting profit" rate. Actual "free cash flow" after putting back non cash items, depreciation, costs absorbed for the mother company is IMO closer to 50% rate. PPHM may be shifting from a "total no leverage" position to a "reasonable leverage" position without mortgaging Avid to the hilt. Avid could easily support 40mm in debt at a 10% rate. Such leverage
would be a form of bridge financing and could always be paid down from a later commercial transaction. No IP encumbered as collateral. IMO several lenders would be available for such a transaction.

Best Regards,
RRdog

[volgoat]

They won't sell out cheap, I see them going all the way now unless a buyout is in triple digits.....