Replies to post #86545 on Avid Bioservices Inc (CDMO)

[jonnyrocket]

Thanks stone - I do think that PPHM will be the biggest shake out in stock market history LOL (our move to .39, that is). Back at the start of the year when we couldn't quite hold any moves higher, with the LID, and we were just hanging around a dollar...we had dropped through any and all supports, so it was always in the back of my mind that we'd get cut in half and killed, before finally being able to move up. Having so many irons in the fire, I had commented that just one could kill us....well I saw it, and it all happened. Not happy that it did...and I for sure am glad that's all behind us finally. That was a tough time for me, and for all of us I know. I'm just so happy that we're moving up like this. Happy for everyone really.

I do agree with you that anything can happen, and we could double tomorrow on news for all i know. But with what we've been through, I try to stay grounded, and I'll go with no straight line up...shakeouts along the way. I hope you are right though....would love the express train to continue! Either way - no matter to me, I'm up in the nose bleed section with RRdog just watching everything unfold...I could care less how we get there, I just know we'll get there at some point within the next 5 years.

[Fire Fox]

Stoneroad- You are correct. Market Cap is the key to what is happening.

With the MOS results PPHM has already achieved in NSCLC, and soon to be repeated in breast and pancreatic cancers, Wall Street is waking up to the fact that this is a Mid-Cap biotech company (i.e. between $2 billion and $5 billion in market cap) and not a Micro-Cap company (i.e. under $300 million in market cap).

Look at this excellent July 2012 Seeking Alpha article explaining the difference between Micro Cap, Small Cap, Mid Cap and Large Cap companies in the biotech sector:

http://seekingalpha.com/article/720411-mid-cap-biotech-stocks-accumulated-by-the-world-s-largest-money-managers

The article discusses three mid-cap companies in the cancer therapeutics markets—MDVN, ARIA, and SGEN—with market caps today of $3.5B, $3.2B and 2.8B respectively.

None of these companies has the potential market “Volume” (as RRdog put it so well) that PPHM has. Yet the PPHM stock price would need to be roughly $35, $32 and $28 respectively to even just match the market cap of these three Mid-Cap biotech companies.

It’s obvious what is happening here: A number of mega fund managers described in this Seeking Alpha article have woken up to the fact that, if PPHM has indeed doubled the SOC in NSCLC, then AA is very likely and PPHM deserves to jump from Micro Cap status to Mid Cap status without barely touching down in Small Cap land.