a massive sell off, page-69

Forgetting the interesting market events of the last week or so SRX has a revenue generating suite of products, it is selling into domestic (small numbers) and international (larger numbers) markets its existing product lines.

Unlike other product-to-market bio-techs it has a good existing revenue stream from existing products. This announcement just means a capital loss as a result of incurred R&D not providing the expected yield. Welcome to this world.

The latest announcement is frankly horrid to read as an investor (they need a markcomm) but if you understand what they actually said or can translate it the results are disappointing from a break-through R&D perspective but not out for the count in regards a product alternative perspective for Oncologists and certainly it may have a greater use in international markets where treatment using other more sophisticated methods are not always available.

This is in leading medicine so expect the risk weighting to be higher than some other sectors. I think $15 - $20 is about right but the market may well test that due to sentiment at this point, it will come back to that in the near-term even if it does fall below.

It was a good reminder to me that many bio-techs on the ASX run a light version of corporate governance and one might wonder whether they are truly investor ready. There are already 20 odd others, with new ones keen to cash in on investor sentiment for bio-techs, out there with varying degrees of risk attached, this one is in the lower risk end of the scale.

Someone made this observation today. Miners dig the ground for precious metals, scientists dig cadavers for previous cells. Be wary of both.