re: Bought into a sinking ship stock

quote:

---

Forgive me, is that a “company buyback” and it would be for $1-$2 a share? And that’s absolute BEST CASE at this point most likely. Like a 0.00001% chance to win even that opportunity?

---

No, a bigger pharmaceutical company would buy your 21 million dollar company at a premium.
So if Pzizer or whoever were to buy it for 45.5 million that would equal about $1.40/share.
$1.40 x 32.5 million shares outstanding = 45.5 million

Another way to look at it:
Say Pfizer didn't want to pay more than 30m to buy it.
A 30 million dollar acquisition would yield .92 cents per share.

It is not uncommon for big pharma to pay about 100% premium to acquire a smaller pharma.
Current worth or market cap of the company stands at 21.4 million.

The question is, does any big pharma company want to buy NLPS. No one knows.

Make sense?

quote:

---

like $1000 and I’d prefer not to lose it, but if so, lessons learned.

---

1k? that's child's play. peanuts. try being down 5 figures or losing 5 figures trading.

fricking thank you for real. Made 100% sense.

So now while my shares are worth ~$0.66 at a buyout I would be whatever the buying company would pay for the shares relative to all the shares out there.

And that’s only a BIG IF it’s worth acquiring for a larger entity.

So it’s basically sell at $0.66 and get what I get or hope that on the off chance a buyout happens I may get as much as maybe double that if I’m lucky.

Any idea at all how common it is for a larger pharma WOULD buy? Is there any precedent of it not happening and it just dissolving?

At the end of the day, I’m gambling a long shot on maybe a better bad deal… best of the worst kinda thing

You're not getting it at all. If it isnt something you would invest in today, just sell and cut your losses. What you happened to pay for it is entirely irrelevant (except for tax implications.). Your judgement is clouded by blindly hoping to redeem your poor investment decision by holding on longer. You dont have a solid investment hypothesis for why the stock is likely to appreciate instead you're just grasping at straws.
Good luck though

quote:

---

if he is squirming over 1k losses he has ZERO business investing or trading PERIOD! that is peanuts

---

Agreed. If someone doesn't have the stomach or the means to take a $1,000 loss, then they need to stick to buying mutual funds with DCA.

And there's nothing wrong with that, it's a tried and true strategy to build wealth over the long term.

quote:

---

Any idea at all how common it is for a larger pharma WOULD buy? Is there any precedent of it not happening and it just dissolving?

---

Most pharma companies fail (run out of money before producing and commercializing an approved drug) or get bought out for a less than desirable price.

Most drugs never make it to FDA approval, and even fewer get approved. After that, commercialization (getting drug to market and in the hands of patients) is very tough. See AUPH.

The stages for this process are pre clinical trials, Phase 1,2,3, then FDA decision.

The most attractive companies to acquire have plenty of cash on hand, a novel drug therapy that has the potential to make 500 million or upwards of a billion dollars annually, and often have significant partnerships already in place.

One caveat here is that big pharma has shifted a bit to acquiring companies with very promising drugs that are still in phase one or two.
It’s all risk/reward. You don’t have to pay nearly as much for an unproven drug.

That said, these deals are still around a billion dollars.
There’s not much hype around 20 million dollar companies.

I truly think the ship has sailed for NLSP. They are worth so little and have no cash on hand. It’s unlikely that a larger company would want to take on a non revenue producing drug and a lot of debt.
That’s not a winning combo.

quote:

---

Sometimes losses can be helpful. Could you use the losses and then reinvest that money somewhere else?

---

There’s that, and also, the OP and every investor and/or trader needs to learn how and when to accept a loss. The people we’ve seen on this and other forums who say they’d rather see their position go to 0 rather than take a loss are destined for failure longer term. One session I sat in at the investment conference last week hammered this point home.

Hoping and praying for a white knight to come in with $ to prop up a shell company is just fantasizing and a waste of time IMO. If after years of waiting, the fundamentals have done nothing but deteriorate, why still be in that position?

I like Warren Buffet’s sage advice in these situations:

Cut sling load on losers early and often.

quote:

---

Somebody explain to me how investing does not equal gambling?

---

The house always wins with gambling. Sometimes I think the deck is stacked against the small investor...but I think we can still come out ahead.