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- 3 May 2009
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Well I haven't tapped my account for a while and for an optimistic punt I put a sell order in this morning @41 cents pre market and went to work. Pleasantly surprised to find it filled when I got home hehe ...
GO PRR
:dance::bananasmi:bananasmi:bananasmi:dance:
Well done - It's been a great week !
Aside from my spec investment, I bought a parcel last friday to trade. Perhaps I'm greedy but PRR appears to have some serious legs. I expect next week to be huge.
Any thoughts if this sustained rise can be maintained, or is this a pump and dump?
Wondering how long to hold on to it though.
More on Prima Biomed's Nasdaq Listing
Last week I wrote the following on Prima Biomed's [ASX: PRR] pending Nasdaq listing:
"Under a Level II listing, the Nasdaq shares will be a mirror of the Australian-listed shares. In other words trading stock on the US market will be the equivalent of trading stock on the Aussie market, so there shouldn't be much or any difference in the respective share prices."
The above statement is still true. But I should have been more precise.
On the Australian market, penny stocks are usually any share that trades below $1 per share. In other words, it's trades for "pennies" - cents...
However, in the US, "penny stocks" aren't really stocks that trade for pennies. In fact, as I mentioned last week, most US investors won't touch stocks unless they at least have a four-stock Nasdaq code.
But it's not just that. When US investors think of penny stocks, they think of stocks that trade between $5-10. If a stock trades under five bucks, many investors just don't want to know about it....Each share listed on the Nasdaq market will be the equivalent of a multiple of shares listed on the Aussie market.
For instance, the company could make it a 30:1 ratio. So that one share listed on the US market equals thirty on the Aussie market. That means Prima Biomed shares would trade at a face value of say $11.10 if the Aussie shares are trading at 37 cents.
If Prima Biomed shares were trading at 35 cents then the equivalent price in the US would be $10.50. If Prima Biomed shares were trading at 50 cents in Australia, the equivalent price in the US would be $15 and so on...
As to the ratio Prima Biomed will use, I don't believe that's been set in stone just yet.
But given the recent price rise, and the need to price the shares attractively to new investors, my guess is the company will opt for a 15:1 to 20:1 ratio so the US share price is below $10....
That'll make it attractive for punters looking for a small-cap stock with a lot of upside.
Another feature of listing on Nasdaq is we could become vulnerable to a hostile takeover from a big pharma.They are all looking for the next big thing as the patents expire
on their blockbuster drugs.
http://www.proactivenewsroom.com/Blog/bid/58064/JP-Morgan-The-Growth-of-Big-Pharma-Deals-with-Smaller-Biotechs
The beauty of something like Cvac is it is just too difficult and expensive to create generically.
Would a takeover be a bad thing for the sp? I would have thought it woukd skyrocket
Couldn't agree more. And I'd prefer any profits from sales to be fed back into an Australian company for further research, rather than overseas. Keeping this thing Australian owned (and successful) could also encourage more funding for other cancer research projects - Peter Mac for example in Melbourne is always looking for donations.I would rather be holding my bag of PRR in 2015 and looking back at those riduculously cheap prices in 2011 and scooping up my dividends and laughing all the way to the bank than giving them away for a bargain price to some corporate raider! :bigun2::bigun2::bigun2::bigun2:
i'm going to buy tomorrow. i believe under 40c is good for these shares... so much potential!
what are peoples predictions for this stock?
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