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Message: Accumulation - Something to consider....

You know its impossible to throw out this idea without me chiming in.

What possible motivation could there be for a party or some parties to engage in manipulative practises to hold RVX's share price down? Are you serious?!?!

The company is currently engaged in a phase III trial the goal of which is to prove that Apebetalone can reduce the risk of MACE in patients with full blown diabetes. You don't get to a phase III trial without achieving success in pre-clinical, phase I and II trials....

Yes some of that success was the result of post hoc analysis, but that's what science is all about....testing to see what works. Like that crappy adhesive on the back of post-it notes, it was the result of a 3M scientist who failed in an attempt to creat a super strong adhesive....instead he made a super weak one and a billion dollar idea was born.

How many people suffer from diabetes in the United States? Almost 30 million in total, that's including both diagnosed and not yet diagnosed. Globally the number is pushing 300 million with half undiagnosed.

And while nobody knows the exact cause of the disease it is widely believed that lack of excercise and poor diet are major contributing factors...and given the trend in current lifestyles, particularily in the developed world...health experts are telling us to expect those numbers to grow with some calling it a burgeoning epidemic.

Yes yes...I know those numbers include those who do not have full blown insulin dependent Diabetes Mellitus...but Diabetes is a progressive disease, and those who are able to regulate their blood glucose levels with medication and diet currently, they can be expected to develop full blown Diabetes in later years.

So what is the potential market for Apebetalone? The numbers stretch beyond my capacity to even try and estimate.

And there's more than Diabetes....given Apebetalone's method of action if BETonMACE proves successful, to my way of thinking that improvess the likelihood of success with indications like Thrombosis, Kidney Disease and perhaps even Alzeheimers.

And note how these diseases disproptionately affect older people. You don't need a university degree in demographic studies to know what segment of the population is growing the fastest. Hell in my little eastern Ontario town the median age is something like 58....which is great because I am still considered young here.

Okay...so that's the potential, the dream. Now let's talk market cap. $1 Billion USD seems far too conservative to me. If Resverlogix was right now a private company and doing an IPO what would an investment bank underwriting a share offering value the company at? Personally I don't think $5 Billion USD would be unrealistic....and if they're successful with all the indications it would still provide awesome upside imo.

Can you imagine the sales job an outfit like JP Morgan would put together if they underwrote an IPO for Resverlogix? I can....

So let's just assume that I'm thinking clearly here and that I haven't gone completely off the deep end....let's consider it possible that RVX could be a $5 billion USD company.

What's it worth right now? At today's price the MC is a little over $200 million CDN or $160 million USD. That's predicated on about 105.2 million shares issued and outstanding, but we all know there are warrants which would probably put us somewhere around 150 million I believe (correct me if I'm way off here please).

We know that the company is going to need to raise additional capital...either through adding to debt or via a share offering....personally I'd bet on a secondary but that's beside the point right now.

Let's assume that fully diluted and accounting for the possibility of a secondary offering that RVX issues a total of 300 million shares. So what are we looking at in terms of PPS if the MC were to attain a value of $5 billion USD? $16.67 USD by my calculations...that's almost $22 Canadian.

And what is the PPS now? Les than $2 CDN.

So why accumulate? If there are others who've considered the potential to be anything in and around what my assumptions are based on....then there's obvious motivation to accumulate.

Now for the problem....me, I'm a problem, Kelsee, BDZ, SanFran and all the other bleacher bum retail investors holding on tightly to our shares, in my opinion we are the problem.

Taking out the shares held by insiders and beneficial owners you've got about 50 million left give or take. Right now those 50 million shares are worth about $100 million CDN. How badly would you want those shares if you figured they were going to be worth $20+ in the months and years to come.

So what do you do? If you start just storming in and buying up all the shares available....like the 2,700 I hung out there at $2.25 today...then what's going to happen? I'll tell you what's going to happen. That idiot Joe_Retail aka krill aka growacet aka ledenfrog, that moron is gonna write another freaking blog and spam it all over stockhouse, stocktwits, twitter and yahoo that's what. RVX will show up on every market tracking site as one of the TSX's top gainers for days and maybe weeks on end....Who knows, some Globe and Mail columnist will do a story on the company....on Canada's biotech darling, following in the steps of Banting and Best in developing a treatment for Diabetes.

So whaddyer do? Well...if you have the means maybe you "shake the tree", while volumes are light you sell into what little retail buy side interest exists and you push the price down....hoping that nervous and price sensitive retailers will loosen their grip on their shares. Maybe you get some hacks to spread some Fear Uncertainty and Doubt on public message boards....

Anyway those are my unabridged (do I have any other kind) thoughts.

Incidentally...the reason I think we've been moving up of late is that....if there are accumulators, they're realizing the time is near and the hour is late.

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