AAH - Arana Therapeutics

[rub92me]

Cashed up biotech stock, now there's a rarity in the current climate :
Their cash balance exceeds their market cap at today's price and they have more than sufficient funding to get some potentially exciting anti-inflammatory drugs through testing and to the market over the next couple of years. To top it off, they have an existing and growing revenue stream from patents/licences. So I used some of my cash today for a long-term (3-5 year) play. Check back in 5 years to see how I went.

 

[rub92me]

As hoped this has held up remarkarbly well during the carnage we're seeing across the market based on their strong cash position. The recent decision to buy back up to 10% of their shares is another positive and will help underpin the price as volumes traded on a daily basis are relatively low.

 

[eladamrine]

Just got some of this share....this share is way undervalued...can anyone explain to me why it's dropping?

 

[Joe Blow]

Just got some of this share....this share is way undervalued...can anyone explain to me why it's dropping?

Perhaps you could share with those reading this thread why you consider AAH to be undervalued? The more detail you can provide the better.

 

[eladamrine]

Well its cash and cash equivalents is comes out to be about 77cents a share. The stock sells for 82-83c as at the end of today. So you're paying 5-6cents for the rest of the company which has good drugs in research. This is not to mention that money is the life blood of a pharmaceuticals company. Its a gamble (about the drugs) guranteed but the potential upside is way bigger relative to risk.

 

[prawn_86]

Its a gamble (about the drugs) guranteed but the potential upside is way bigger relative to risk.

I would argue that there are better investments.

There are some companies out there with regular earnings who are trading below cash value...

 

[eladamrine]

Screenshot or it didn't happen:

Hahah are there? I just started so AAH was something i was like .

 

[justiceotp]

I haven't had a good look at these guys but do currently hold a couple of bio med stocks, they are high risk but can be high return. These guys may be cashed up but will burn through it doing the research required and then again in the trials before they can bring it to market.

 

[rub92me]

I would argue that there are better investments.

There are some companies out there with regular earnings who are trading below cash value...

Hard to follow your argument if you're not providing the companies you're comparing this with. They could have entirely different but equally big or bigger risks. How many biotech companies are amongst the companies you're thinking of? Perhaps name one or two?

 

[prawn_86]

Hard to follow your argument if you're not providing the companies you're comparing this with. They could have entirely different but equally big or bigger risks. How many biotech companies are amongst the companies you're thinking of? Perhaps name one or two?

The co's im thinking of are not biotechs.

But i would argue that a comapny below cash backing, who has a relatively stable income stream already, has less risk then a biotech co who is trading just above cash value

 

[rub92me]

1) AAH has a stable (and increasing) income stream as well.
2) It depends what those other companies are doing with that cash. OZL had great cash backing too not so long ago.

 

[Wallab1y]

So Rub2me, how are you thinking about your patient money you put into Arana, the flagship of Aussie biotechs?
I bought a lott too, but they were over $2 then.
Wabbles

 

[eladamrine]

Wow, i bought it at 85 cents and now it has jumped to 1.39. Whats other people doing with it their stocks? Are you guys selling or holding it thinking it will increase in the long run? I though the drugs were promising and you were buying in for cheap considering the cash and cash equivalents worked out to be 75c a share already, but now that its 1.39...i'm no longer certain its still a good buy.

 

[MBI]

I just recd the Arana takeover package from Cephalon.
I intend to accept the offer. Therein is the Transfer and Acceptance Form. Can some kind soul advise me who should be named as the Controlling Participant's Name under the form? My shares are registered under my name with CHESS and ETrade is the CHESS sponsor.

Pls help as this is the first time I am mucking around with takeover forms and Etrade is useless and unresponsive to my email enquiries. I think Etrade is dying and surviving on skeleton crew right now.

Thank you.

 

[rub92me]

I just recd the Arana takeover package from Cephalon.
I intend to accept the offer. Therein is the Transfer and Acceptance Form. Can some kind soul advise me who should be named as the Controlling Participant's Name under the form? My shares are registered under my name with CHESS and ETrade is the CHESS sponsor.

Pls help as this is the first time I am mucking around with takeover forms and Etrade is useless and unresponsive to my email enquiries. I think Etrade is dying and surviving on skeleton crew right now.

Thank you.

If you want to sell, you may as well put in a sell bid; it's still trading and you don't have to bother with transfer forms.
I personally consider the offer a low ball and will keep sitting on the fence for now to see if another bidder arrives on the scene.
I'm sure prawn can think of better investments too....