How does one anticipate the pitfalls of sustainability?
I was left scratching my head about yet another recent biotechnology Chapter 11 bankruptcy or should I have been? Company “X” had 2 FDA approved products, revenues, a tractionable market with a sales force.
As one of – many – who have sought protection; should “X” be considered just … bad luck in bad times …? They “seemed” to have been “more than a glass half full” as compared to many public healthcare small-caps – especially by having a “been there and seen it before” board.
- I shouldn’t say I am surprised, I have seen it before – however, the ability to cut costs and execute new directions involves another set of skills.
I have been reviewing all filings and message boards for my (own) after-action report. Many of us need to play closer attention to releases and filings – Q’s and K’s – specifically late ones, strategic options statements, accountant statements re on-going concern, NASDAQ de-listing filings as well as investor rotations!
- Key statistics must be scrutinized but do not always provide the appropriate measurement – it didn’t for me! The legitimacy of message boards was totally unrealistic as I reviewed perception.
The Bottom Line: Investment decision-making must – return to basics – as small-cap healthcare investors with some or no access to I-Bank research need timely intelligence and diligence updates. My spread sheet was just enhanced by 7 lines. Investors are more afraid of being left with empty pockets than being left behind in any market rally. But, what … else … lurks in the recesses of many small-cap healthcare companies? In this tough market; the value of real-time intelligence has become more important in providing an investor advantage. One quick observation, strategic option press releases shouldn’t invite an investor initiative other than exit.
