Upside potential

A corollary of Kleiner s First Law is, "Raise money when you do not need it." If you wait until your need for cash is desperate, you can be sure the financial terms will be unattractive. The less you need the money, the more leverage you will have with investors. In fact, a general principle to keep in mind is that investors love to put their money where it is not needed for survival, but rather is needed to expand the upside potential of the business plan. 

The central issue in any stock offering is price. In traditional, profitable companies price is usually measured as a price/earnings ratio. Since biotech companies rarely are profitable, price is evaluated using the capitalized value of the outstanding stock, i.e., price per share times the total number of shares, compared to other companies at similar stages of development with comparable upside potential. This "market cap" number (either private or public) is what sophisticated biotech investors look to in measuring whether an offering price is fair. Two measures used are postmoney and premoney values. 

Note In the above analysis, most mature companies with mature product lines would choose option B. It keeps the initial capital low until the product line proves itself, and offers upside potential if the business acts as forecasted. 

Due to its biological and medicinal features, Aviptadil promises great upside potential as a therapeutic option in additional different lung diseases, such as lung sarcoidosis, and beyond. 

Ironically, it is interesting to note the results found in Italy and Spain, where the markets have minimal generic activity. It is understandable that these markets will soon be targeted because of the upside potential that is exhibited due to a the lack of generic penetration. 

Opportunity value (or upside potential), which is defined the same way as VaR but on the upside. OV and VaR are illustrated in Figure 12.10 where two projects are compared, one with expected profit of 3 (arbitrary units) and the other of 3.4. The former has a VaR of 0.75, while the latter has a VaR of 1.75. Conversely, the upside potential of these two projects is 0.75 and 3.075, respectively. Considering a reduction in VaR without looking at the change in OV can lead to solutions that are too risk averse. 

As noted, a bond may contain an embedded option which permits the issuer to call or retire all or part of the issue before the maturity date. The bondholder, in effect, is the writer of the call option. From the bondholder s perspective, there are three disadvantages of the embedded call option. First, relative to bond that is option-free, the call option introduces uncertainty into the cash flow pattern. Second, since the issuer is more likely to call the bond when interest rates have fallen, if the bond is called, then the bondholder must reinvest the proceeds received at the lower interest rates. Third, a callable bond s upside potential is reduced because the bond price will not rise above the price at which the issuer can call the bond. Collectively, these three disadvantages are referred to as call risk. MBS and ABS that are securitized by loans where the borrower has the option to prepay are exposed to similar risks. This is called prepayment risk, which is discussed in Chapter 11. 

It can be seen from Exhibit 2.3 that bonds bear a smaller upside potential compared to stocks, for example, bond price increases after an upbeat earnings report of a company are usually smaller than share price advances. Shareholders also risk total loss but profit from theoretically unlimited increases in the company s value. The next section... 

This example shows the close interaction between information, lead time, and capacity choice in the presence of demand uncertainty. In the absence of information, capacity buffers are optimal. However, lower lead times may permit better demand information, thus leading to a better match between demand levels and capacity. This enables additional capacity to be planned when there is an upside potential associated with high demand and simultaneously lower capacity when demand levels are anticipated to be low. The net result is a higgler profitability with lowered average capacity levels. 

As barrier technology improves, we expect a growth rate of 10 percent per year for this market — with an upside potential of as much as 20 percent per year. 

Revenue upside potential is most often used to justify adding events and skus reviewing real impact after some time or after the event helps force discipline. 

The first approach is in line with common practice in many fields of business research such as finance. Here, the fluctuations aroimd the expected value (mean) of a performance measure are used as proxy for risk, where risk is equated with variance and covers both a downside and an upside potential. Following these considerations and in analogy to the general definition of March and Shapira... 

A potential problem for rotary valve usage is that they tend to pull material preferentially from the upside of the valve, which can affect the mass flow pattern. Another problem is that once soHd drops from the vane, the air or gas that replaces it is often pumped back up into the bin. In addition, air can leak around the valve rotor. Such air flows can decrease the soflds flow rates and/or cause flooding problems. A vertical section shown in Figure 13 can alleviate the preferential flow problem because the flow channel expands in this area, usually opening up to the full outlet. To rectify the countercurrent air flow problem, a vent line helps to take the air away to a dust collector or at least back into the top of the bin. 

These equations form a fourth-order system of differential equations which cannot be solved analytically in almost all interesting nonseparable cases. Further, according to these equations, the particle slides from the hump of the upside-down potential — V(Q) (see fig. 24), and, unless the initial conditions are specially chosen, it exercises an infinite aperiodic motion. In other words, the instanton trajectory with the required periodic boundary conditions,... 

This formula, however, tacitly supposes that the instanton period depends monotonically on its amplitude so that the zero-amplitude vibrations in the upside-down barrier possess the smallest possible period 2nla>. This is obvious for sufficiently nonpathological one-dimensional potentials, but in two dimensions this is not necessarily the case. Benderskii et al. [1993] have found that there are certain cases of strongly bent two-dimensional PES when the instanton period has a minimum at a finite amplitude. Therefore, the cross-over temperature, formally defined as the lowest temperature at which the instanton still exists, turns out to be higher than that predicted by (4.7). At 7 > Tc the trivial solution Q= Q Q is the saddle-point coordinate) emerges instead of instanton, the action equals S = pV (where F " is the barrier height at the saddle point) and the Arrhenius dependence k oc exp( — F ") holds. 

The dimensionless upside-down barrier frequency equals = 2(1 — and the transverse frequency Qf = Q. The instanton action at = oo in the one-dimensional potential (4.41) equals [cf. eq. (3.68)]... 

Such a method has recently been developed by Miller. et. al. (28). It uses short lengths of classical trajectory, calculated on an upside-down potential energy surface, to obtain a nonlocal correction to the classical (canonical) equilibrium probability density Peq(p, ) at each point then uses this corrected density to evaluate the rate constant via eq. 4. The method appears to handle the anharmonic tunneling in the reactions H+HH and D+HH fairly well (28), and can... 

The specimens were mounted on stubs and attached to a rotary drive within the electrochemical vessel and turned upside down to contact the electrolyte surface with their circular front plane. The electrolyte level was arranged such that the specimens were not wetted around the edge (hanging meniscus). Short passivation times of less than 1 second were finished by disconnection of the counter electrode with a relay, thus opening the potentiostatic circuit. Alternatively, the potential was pulsed to a value where no further reaction occurs. 

The BQ1 term alone, with B positive, would give a potential resembling the harmonic oscillator potential in Figure 6.4 (dashed curve) but with steeper sides. The inclusion of the AQ2 term, with A negative, adds an upside-down parabola at Q = 0 and the result is a W-shaped potential. The barrier height b is given by... 

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