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
Every debt is ultimately paid, if not by the debtor, then eventually by the creditor.~Jim Grant
Request email delivery
- Jul 22:
Michelle, Tom Hanks, Lin-Manuel, Janelle Monae . . .
- Jul 20:
- Jul 19:
Juulers Against Juul; Jonesing for Obama
- Jul 18:
I Do Solemnly Swear . . .
- Jul 17:
Fox News Asks: What Has HAPPENED?!
- Jul 16:
- Jul 16:
$100 Of High-End Stuff Free — With Free Shipping
- Jul 13:
- Jul 12:
It’s Up To Us To Fix This, Argues Frum
- Jul 11:
Heeding Dickens’ Third Ghost
- Jul 22: