PXMVF - Revisiting Second Sight Medical Products: The EV Is Negative And Being Short No Longer Looks Appealing
- Second Sight has a negative enterprise value at the moment as it has about $69 million in cash.
- In my view, short-selling the shares of a company with a negative enterprise value could be dangerous and bears could be better off closing their positions.
- However, I’m not bullish either as Second Sight is merging with another early-stage biotech company and the market valuation of the combined entity stands at close to $250 million.
- Most of the cash will likely be invested in the development of new products and I think it’s too early to tell whether any of them have blockbuster potential.
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Revisiting Second Sight Medical Products: The EV Is Negative And Being Short No Longer Looks Appealing