You’re not going to tell me you read the last three days’ columns in their entirety – they were much too long, and much of that time the web site was down anyway. So go read ’em now. Especially the item about comparative oinkiness.
Today, let me just note that one of the firms that has been recommending Nitromed stock, Friedman, Billings, Ramsey & Co., yesterday reduced its forecasts for sales of BiDil, the company’s (only) product, from $17 million in 2005 to $7 million – 58% lower than previously. From $134 million in 2006 to $59.5 million – 55% lower. And from $232 million in 2007 to $134 million – 42% lower. And since sales are not all profit (the pills themselves cost almost nothing to produce, but there is a projected $120 million or so a year in other expenses), the reduction in expected profit in those years is presumably even steeper.
So by how much has this firm reduced its ‘target price’ for the stock, given that they think sales will be only half what they thought before? By 10%, from $32 to $29. (They now think 2008 will be the year big profits start to flow.)
NTMD closed at $16.32 last night, down from just over $22 when we first started talking about it July 6. Anything is possible, of course. But presuming you went into this with money you could truly afford to lose (as you still could): don’t sell your puts. Oink, oink.
Quote of the Day
So we went to Atari and said, 'Hey, we've got this amazing thing, even built with some of your parts, and what do you think about funding us? Or we'll give it to you. We just want to do it. And they said, 'No.'~Apple founder Steve Jobs
Request email delivery
- May 22:
Have You Already Seen This One?
- May 21:
How The Enlightenment Ends . . .
- May 18:
My Classmate Saved Stephen Hawking
- May 17:
Hi-Yo, Silver! (Unless You’re Poor)
- May 16:
Will On Pence
- May 15:
Mitch McConnell Speaks
- May 14:
From Greece To Iran
- May 11:
3.9% Unemployment: Does The Truth Matter?
- May 10:
- May 9:
Free Toolkits, Wildly Overpriced Drugs
- May 22: