Replies to post #161541 on Biotech Values

[DewDiligence]

PTLA traded as high as 16.48 today, albeit on light volume.

[DewDiligence]

What happened to PTLA today?? Crazy trading.

[DewDiligence]

(PTLA)—For valuation of any stock, I count options and warrants that have realistically attainable exercise prices, but I do not count shares reserved for future awards to management-incentive plans. In a buyout, in-the-money options and warrants get cashed out, but shares reserved for incentive awards do not.

Thus, following the exercise of the underwriters’ option today (see next post), PTLA has approximately 38M diluted shares for valuation purposes.