Interesting read this morning in the Australian http://www.theaustralian.news.com.au/story/0,25197,23671159-5001942,00.html confirming what all of us already knew ...
Here is the PGL related portion - "Of course, it's a moot point as to what signals justifiable value. One test is that a number of $50 million market cap-plus plays are trading at only a modest premium to their cash backing. Conveniently, these stocks are in advanced phase-three development stage and so carry substantially less risk. Among them, liver cancer drug hopeful Progen Pharmaceuticals (PGL) has $91 million cash, but a market cap of about $120 million. Progen is aiming to penetrate the Chinese market, Asians being more susceptible to liver cancer than anyone else.
Arguably, $30 million undervalues the obvious potential of such a large market. On a more sober note, China is a difficult route for pharma companies, partly because of the risk of intellectual property breaches.
Potts describes Progen as a "fine example of a company that has borne the brunt of a lot of investor sentiment". "
PGL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
