“Where do we go from here?” is a question I was asked a few times yesterday after the 10Q was released and I didn’t really understand the question fully. For starters, there wasn’t anything “bad” about the 10Q. Most everything was already stuff we should have all been aware of if we’re paying attention. The 10Q was a re-confirmation of things we knew.
For example, we still know that OWCP has reported to having $2 million CASH on the books as of the end of Quarter 1 (March 31st, 2017) — most of which was from those restricted shares sold in the first Quarter.
We also got to see that some investors exercised their warrants and bought more shares. You can say, “Well, they got them at a discount, so why wouldn’t they?” — but then you’d be forgetting that their Warrant shares are ALSO restricted for 6 months. So, they were still confident enough in a Return on Investment 6 months down the road — even after going from $3.23 to $0.60. 😉
The one thing people keep fixating on (without the facts) is the “General and Administrative Expense”. If you look at Page 6 of the 10Q titled “Condensed Consolidated Statements of Cash Flows”, you can clearly see that “Stock Based Compensation” was the bulk. I don’t know about you, but it makes me far more confident that these guys are compensated with restricted stock. They have that much more motivation to build the company and get the stock price higher and higher.
It remains my belief that we will have updates very soon. I have no reason to believe otherwise. Management is still there and replying to (most) e-mails, but you have to remember how many people are e-mailing them and basically asking for “Inside Information”. Don’t expect a reply for stuff like that. They can’t tell you exact dates and precise information until it’s made publicly available.
Food For Thought: I sold my 16-year-old tech business this year and it took 2 months from the day I first met with the General Manager to the day we signed papers — and that was technically the ‘easy route’ where they did a stock sale for simplicity. So, my point is, if OWCP reported (via 8K on April 8th) they were “currently in negotiations for scientific and marketing cooperation agreements” — it’s not unreasonable or unrealistic that those negotiations could be wrapping up soon and we may hear an announcement soon.
Having first hand knowledge of this, I’m going to continue to be patient. Biotech / Pharma deals aren’t going to be wham-bam done in a few weeks, especially if it’s “a big deal” where there may be people coming from the partnered company to take on new roles. Who knows! I’m excited to find out, however.
In addition to the likely scientific & marketing cooperation agreements we’ll hear about, remember the other things we’ll likely, in my opinion, be hearing about (as mentioned in my blog from May 1st) relatively soon:
- Psoriasis Efficacy Results to be Published. I remember the original IRB Approval 8K talked about NIH Registry too. So, they weren’t just going to open Microsoft Word and type up something to throw at us — it was going to be Published in a more sophisticated way, in my opinion.
- 8K from March 20th: Mordechai Bignitz directed the scientific team to submit an operating plan within 60 to 90 days — which is roughly between May 19th and June 18th. Thus, expect to hear more about MORE topical creams products for “other skin disorders and conditions”.
- Sublingual Tablet: The 10K talked about a “Fibromyalgia” having a status of “Drafted a clinical trial protocol synopsis” — so, again, I expect that we’ll hear something about an official trial where they test the already completed & ready tablet specifically for people with Fibromyalgia.
- We already know from the PR on May 3rd they’re proceeding with the next phase of study for Multiple Myeloma. I don’t know if we’ll definitely see another 8K in the coming weeks/months stating it’s officially underway or not, but it’s certainly possible. Dr. Baruch was quoted in that PR as saying, “This unique study, which we designed to pursue and secure FDA orphan designation status”. (Remember Miriam Sani has lots of experience helping companies gain FDA approval.)
At the end of the day, I still STRONGLY URGE every one of you to determine your own plan for Accumulating, Holding, and Selling. If you’ve been absolutely miserable the last month or two — maybe you need to consider your Risk/Reward.
I have yet to sell a single share since I first started buying in October. I’ve had brief moments of weakness on really bad days and sometimes the “Bashers” on iHub get to me. As a result, I’ve re-evaluated the DD within my own blogs and re-read the 8Ks and I chose to stay away from iHub. I’ve been happy with that decision because I find that I’m less stressed when I’m not constantly trying to respond to “the sky is falling” posts from people who clearly have an agenda and having to be so careful in how things are worded in my reply to avoid having my post deleted. It’s just not worth it for me. I have a full time day job to worry about too. So, I’ll write here and Tweet when I feel there’s something necessary.
Remember, there are investors on both sides of the argument. Some posters are TOO positive and keep shouting about unrealistic gains by a specific time. I don’t disagree that gains are coming, but we can’t expect 25%, 50%, 100% gains “by Friday” just because. Stocks need volume driven by positive news/updates to see nice gains.
Then again, if OWCP does run to $2.00 or even $5.00 on big news in the next month or two — it doesn’t mean it will maintain that share price without more and more positive news. So, don’t be alarmed by consolidation again. Some people are truly investing in OWCP’s long term plan and will hold beyond this Fall & Winter, while others will be happy to sell at $2.00, $3.00, etc. It is what it is.
You must determine YOUR strategy. Do your DD. Don’t let anybody convince you what the stock is going to do without facts and cited sources.
I sincerely wish each and every honest OWCP investor/trader a profitable year & life.