STI 0.00% 0.2¢ stirling products limited

be careful

  1. 210 Posts.
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    all investors should be very careful with STI

    I am not talking about the run in with ASIC

    this company doesn't do the standard biotech model. The products are marginal and for the fringe of the pharmaceutical market.

    Remember it takes 10 years of trials and about $50M to develop a drug in the standard model. That is per drug.

    Now STI pipeline includes
    Natural health
    Animal health
    Adjuvant treatment for HIV, Hepatitis and TB.

    This scattergun approach would strain the resources of an experienced company and its staff. But they don't actually have the biotech management depth rather stockbrokers running the company.

    Also the biggest problem is funding. With a quarterly cash burn of $1.042M and only $0.924M in actual cash. How can they effectively fund a proper launch of any of these products. The tried and true biotech model of successful drug development look at Acrux Ltd,Prima Biomed Ltd, Pharmaxis Ltd or ChemGenex Ltd. Look at the past and see how much money and time they spent before they have been successful in their development and ask why STI would be different or how it is possible for them to develop their current pipeline.

    On the positive side, the company has deep liquidity and is a low price/high volatilty to trade with but on the business fundamentals it is a dangerous risky play with less than 1% chance of being successful.

    Good luck trading and stay safe.
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