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27/10/18
08:48
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Originally posted by Shellbell
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Thanks supertramp for that report, and for mentioning FTT months ago on the VLA thread to us fellow posters. I am kicking myself for not buying in then in the low 4c range. I let the lack of shareprice movement and liquidity put me off at the time. Aaargh. Recently got onboard with a couple of small parcels.
The report certainly validates the excitement here leading into the trial results. I appreciate you imparting your knowledge and insight on FTT. I feel a little more at ease now having some information about the current trials and what to expect from the upcoming results.
I had no idea just how volatile the speccy end of the biotech sector is! I checked out the charts of the others mentioned. OMG... turbulent or what? I dare not venture beyond where I am now in FTT. I feel at least a little safe here having read Lodge Partners valuation. I am at least better informed now and comfortable with the fundamentals.
The only issue that concerns me, and you may be able to shed some light on it, supertramp, is the "buy the rumour, sell the news" scenario. VLA's drop of over 50% from $1.30 following great trial results to 60c (before the eventual takeover), still baffles me. Traders sold it down (initially), so what would prevent a similar scenario from happening here?
Healthcare stocks tend to be defensive stocks in that they do better than those in other sectors when the broader market is down. Will FTT's shareprice action be immune to a broader market selloff? Welcome any opinions or observations on this. I guess I am seeking a bit of an overview of what to expect given the unfavourable environment.
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the other thing to note is that vla market cap at $1.30 was something like $300M MC, which is quite high compared to australian peers in cancer therapies. at $60M MC ftt is priced quite low if the trials are a success (and high if not). so I would expect more of a one way rerate.