Lia,
"My calculations certainly are more simplistic than some of our esteemed posters, but they work for me." The esteemed posters or your calculations? LOL!
Rich,
First, regarding the calcs of PPS based on revenue/earnings - to that, I add whatever else the company has going, also the speculation of more sales in the future and the overall buzz. I wouldn't peg the entire value after a couple of years of sales strictly on earnings per share, otherwise, I definitely could see a mid-teen multiple.
I really don't see MNKD getting to be more than a $3 billion dollar company prior to at least a partnership, and I don't see it at $5 billion at least until FDA approval with a partner already in tow. Like Lia and many others, I hope you're right and I'm wrong about this.
As the result of my instincts on this stock, I have been selling calls, anywhere from $9 to $13, for various months, including August, September, November and January. Today, for example, I sold 30 contracts of Sept 12's and got around .48 and did not have to put up too much in margin, I also sold 50 Aug 11's and got about .21. On the Aug, the results may not even be out by then, so that would be easy money (I'm tempting the buyout Gods on that statement, purposely!), with no results. Even with very good results, I don't see the stock above $11, that would be in excess of $3 billion market cap.
All that being said, I would not sell many calls at all if they were uncoverd by my warrants, cuz a buyout could occur and the price could be $15 - $20 (would serve me right, but I feel I have to hedge some, and this is how I'm doing it for now).
As was discussed before on this board, buying puts is too darn expensive, perhaps if the stock were to get up to $8 or $9, but at $7, the puts don't make sense to me.
