TripTrap
4 years ago
Company Information
https://kitovpharma.investorroom.com/
Kitov Pharma is an innovative biopharmaceutical drug development company. Leveraging deep regulatory and clinical-trial expertise, Kitovβs veteran team of healthcare and business professionals maintains a proven track record in streamlined end-to-end drug development and approval. Kitovβs flagship combination drug, Consensiβ’, achieved the primary efficacy endpoints for its Phase III and Phase III/IV clinical trials, and was approved by the U.S. FDA for patients suffering from osteoarthritis pain and hypertension. NT-219, which is developed by Kitov's majority-owned subsidiary, TyrNovo Ltd., is a novel patented small molecule designed to overcome cancer drug resistance that is currently in pre-clinical development. By lowering development risk and cost through fast-track regulatory approval of novel late-stage therapeutics, Kitov plans to deliver rapid ROI and long-term potential to investors, while making a meaningful impact on peopleβs lives.
LearnToTrade
8 years ago
TOP 10 FUND HOLDING of KTOV
#10. Wells Fargo & Company MN 2,000
#09. UBS Group AG 2,547
#08. FNY Managed Accounts LLC 5,000
#07. Advisor Group Inc. 7,500
#06. Creative Planning 7,875
#05. Jane Street Group LC 11,314
#04. First Allied Advisory S Inc. 15,000
#03. Menta Capital LLC 16,084
#02. KCG Holdings Inc. 33,176
#01. Sabby Management LLC 232,524
tjguy
8 years ago
Evening here, but good morning to you!
I have read up on it and I find it hard to understand.
The Black Scholes call option formula is calculated by multiplying the stock price by the cumulative standard normal probability distribution function. Thereafter, the net present value (NPV) of the strike price multiplied by the cumulative standard normal distribution is subtracted from the resulting value of the previous calculation. In mathematical notation, C = S*N(d1) - Ke^(-r*T)*N(d2). Conversely, the value of a put option could be calculated using the formula: P = Ke^(-r*T)*N(-d2) - S*N(-d1). In both formulas, S is the stock price, K is the strike price, r is the risk-free interest rate and T is the time to maturity. The formula for d1 is: (ln(S/K) + (r + (annualized volatility)^2 / 2)*T) / (annualized volatility * (T^(0.5))). The formula for d2 is: d1 - (annualized volatility)*(T^(0.5)).
The page where it shows how to figure the black scholes value gives you an answer. I think the current figure you get is 2.86 or something like that. My guess is that is current value of the warrant which means that the KTOV warrant is very undervalued right now according to that formula/model.
Is that the correct way to read the 2.86 figure?
Thanks.
ash111
8 years ago
Since many asking about Warrants via social networks, here some information I posted before:
KTOV/KTOVW Warrants can offer significant gains to an investor. If commons are trading $20 those Warrants will be trading at least $16.22 (20-3.78 ), 8.5 times investment return (at least, depends on remaining days till expiration date,could get an additional Premium) vs 5 times+ investment return if you own commons.
you can trade them like commons thats the beauty.
There should be a greater premium on warrants. 4 year exercise price (November 2020). That's a long time. B&S has a value of between 1.77-2.86 base on volatility 50-100% and current commons price:
https://www.mystockoptions.com/black-scholes.cfm?ticker=&s=4&x=3.78&t=4.1&r=3%25&v=100%25&calculate=Calculate
Will be better to Treat Warrants like a regular stock instead of exercising for several reasons:
1. Fees and lock-up period if you exercise.
2. Warrants not βin the moneyβ. if warrants will not get a premium this might continue in the future as well
3. The warrants exercisable at 3.78, Expired 4 years out on 11/19/2020 and i find no reason to exercise them the upcoming year (even if "on the Money") due KIT-302 gonna hit the market in 2017 as represented by the company. there is also a Potential takeover target by Pfizer or another big Pharma before. all imo.
if you ask me, there is no chance of fully diluted the coming years, even not 50% imo, but even w/fully diluted(warrants) cap is still a joke relating a few hundred millions(sales) annually per experts. Fully diluted it's still only about a double current market cap and change company with 20m+ in cash. Market Cap, Cash, sales prediction and Highlights can be found on KTOV board (sticky KTOV September 13th DD ).There is never 100% guarantee w/any stock but risk/reward ratio here, one of the most impressive I have seen.