1) Determine if an emerging growth company may be able to transition into a long-term growth company. This tells the investor it’s a good long-term investment.

2) Determine if a Big Pharma company has sustainable cash flow to survive “Bad News”. This tells the investor to invest in the company when the stock price is low, and the Company is beginning to execute one of its non-transparent cash-flow levers to generate significant cash to survive and thrive. The research model can be used on other established companies in other Industries.

3) Help determine which “Biotech” companies may get acquired. This may create a good investment opportunity.

Cash flow drivers are the components of a business evaluation model that drive a company’s cash flows. The elements help financial analysts forecast a company’s future cash flow and build a predictive valuation of a company.

Most cash flow drivers are transparent and known to the market. The value of the RESEARCH MODEL is it unearths sustainable, long-term, non-transparent cash flow drivers that are not easily detectable by the majority of the “market.”

If a company does not have access to long-term, sustainable cash flow drivers, the market will properly value the stock. If the Company has long-term sustainable, non-transparent cash flow drivers the market will not recognize these and not factor them in, thus the market will undervalue the stock price.