Re: BearDown, Ledenfrog, Tundup and all other experts.....
posted on
Oct 20, 2015 04:34AM
Flattered that you regard me as an expert. I am seeking light just like everyone else.
You ask why this isn't a pump job. I would flip the question on its head.
If this were a pump job the shares wouldn't be trading at the same level as they were 10 years ago. Even taking account of the dilution we are still trading at the same market cap level as 2004/2005.
No, this is almost the opposite of a pump and dump. Here you have had 1, and now 2, strategic long term investors in the form of Eastern and Hepalink. Here there is a management team and some scientists who are absolutely convinced about the ground breaking nature of the science and its worth. they are unwilling to sell at what they see is too low a price.
This is the problem for anyone who wants to make a 'quick buck'. RVX effectively is a tightly held stock. There is no liquidity. There are no institutional shareholders. There are no big league brokers making a market in the stock.
Why? because big league brokers need to get paid, and in order to get paid there needs to be a liquidity event and after that there needs to be enough trade in the stock to warrant maintaining coverage.
The fact that RVX DOESN'T want to play the 'pump and dump' game is the reason the shares are trading where they are. Until they get an offer which meets their expectations as to the worth of the science they are prepared to go it alone.
So RVX is the opposite of a pump and dump story. It is an investment for those with strong stomachs and long term horizon.
There are those who criticise RVX management on missing deadlines amd making 'pumper-ish' news releases. But this is not the issue. Rather it is the symptom of the real issue. Namely that RVX is running a tight ship. If it had more resources perhaps it would be able to speed things along? This is my main strategic concern, that they are trying to do it all on such a tight budget that corners are cut and mistakes are made. They think the way to maximise shareholder value is to go it alone. But in some cases it makes sense to bring more people (and more financial resources) into the story.
Who knows, maybe things will change in the next year as i) more KOLs publish in respected journals and the science becomes better known and accepted ii) the PNH orphan trial commences (and hopefully concludes in next 12-18 months) and iii) big pharma finally accepts that CETPs are a dead end and is willing to take RVX more seriously and iv) RVX may well do a placing if it does list on Nasdaq and that woukd possibly involve proper institutionsl investors and proper anslyst coverage.... now that is an interesting thought... and ironically that is when new investors should be asking themselves if it is a pump n dump job... but that is not a worry for now!
If you want to see a pump and dump job check out Esperion. The pump has to come before the dump and I would very much like to see a bit more pumping on RVX!