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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I realize that I have a poor understanding of how to value "pre-sales" biotech companies such as TR. How is a quantitative value placed on them - I assume it is based somehow on the potential market share of the company in the specific area they are developing drugs for, as well as the size of that market and the risk of getting product to commercial trade. But this seems all very subjective. For example, TRIL has traded all over the map, the value can seem to double or be cut in half based on some combination of risk profile vs. potential. For the average retail investor, how does one go about trying to value these companies, or is is better to wait until sales start to happen and then try to value to company on sales projection? Other examples could be PLI, or one I'm still trying to forget from years past, ISA. I'm wondering if these types of companies have a place in a responsible portfolio even one is "high growth" oriented?
Read Answer Asked by Kel on February 06, 2017
Q: Hi folks,almost to embaressed to admit still own some Concordia,but company issued n/r:Concordia International Corp. Makes Final Earn Out Payment to Cinven,Today's payment of £72 million, plus interest of approximately £1.5 million, was paid with cash on hand.But a poster stated,"Had to raise 9.5% 1st lien bonds to pay the earn out. Hardly a good sign.". Could I please get your opinion on todays news and future of company going forward, at least Trump yesterday seemed to throw an olive branch at pharma companies that he would work with them and not bury them. Thanks as always, jb
Read Answer Asked by John on February 02, 2017
Q: Hi Peter! SIS said in their statement "There are over a thousand resellers of accessibility products in North America." Their purpose behind this statement was to iterate that there are many opportunities for acquisitions that could improve synergies, but I'm more concerned about how they maintain a competitive advantage. Do they depend too much on R&D? If not, what makes them stand out from the rest and what are the barriers to entry? Is there any brand loyalty among its customers? Do you see them being bought out in the future (i.e. like United Technologies that own OTIS elevators)? Thanks!
Read Answer Asked by Michael on January 23, 2017
Q: I read your summary back in December on MSL. It was not flattering. As you expected the stock continues to languish. Are there other Companies in this space you would prefer and would you sell MSL (small holding) to buy it?
Read Answer Asked by Greg on January 20, 2017
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