My overall thought - Oasmia Pharmaceutical AB2019-02-27 07:02, Edited at: 2019-02-28 10:43
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Let's be clear. It's outstanding world-class research resulting in an exceptionally good, needed and important product. Market approved in the EU. Reassessment shortly
Despite all the "drama" between Julian Aleksov ("JA") and Arwidsro Invest / Per Arwidsson ("PA") regarding the ownership of the company; We can all agree that this is a fantastic company on the starting point of a visionary journey. I must say, it´s rare and has probably never been seen, a company like Oasmia with all the fundamental value and backbone (with patents and various market approvals) being this undervalued! Comparing with competitors, the company value should correspond to a share price of at least SEK 40 at the time of writing (share price below SEK 10, ridiculous!).
Short about XR-17: The platform, XR-17. a type of nanotechnology where insoluble substances are contained within a nano-sized water soluble enclosure, a so-called micelle. The platform is a bridge where you inflate -to my veto- vitamin A (protein) to implement medicine molecules. This increases its potential uses significantly, in fact, it opens up endless opportunities for different medications. Once XR17 has delivered the encapsulated molecule (medicine) or molecules to the target, the excipient is metabolized naturally.
I do not believe that Julian Aleksov is a straight shooter. I think he´s "bad" for the company. If you have Oasmia's fundamentals and you can´t bring the company to the next phase after several years you´re definitely the wrong chef for this kitchen.
Remember that rumours are often revelling
According to rumours, there are a few big players standing on the sideline that has literally stated "We will not enter (as investors) as long as JA has the power"
According to another rumour, JA has said behind closed doors; "I want to recapture my company" -Which would explain a lot, undeclared Russian sales, other unknown sales, studies, partnership(s), new agreements, AdvaVet updates etc
For new investors, luckily they have (had) JA who probably keeps the share price low according to the rumour. Otherwise (on the proven and serious note) the company's fundamentals will work as a comfort. As well as Arwidsro Invest / Per Arwidsson who is the biggest shareholder. They are long-term investors and has the company's best interest in mind. PA has called for an extraordinary general meeting where he will propose a new board with qualified persons with good contact networks in biomedicine, biotechnology and the pharmaceutical industry.
To sum it all up; I believe Oasmia is undervalued for a company with a product with a market approval rating in the EU. I anticipate the share price to increase over the coming year. As the new board (hopefully to be voted in shortly) approaches real commercialization the risk development will fade away. My target price is, therefore, SEK 27,60 with the current board of directors compared with today's ridiculous value.