Bell Potter downgrade 23 November 2015, page-25

You really have a bone to crack don't you?

I refuse to get in the $16 debate with you..

But yes I have actually read the whole report despite the steep cut to $4.50.

BP initiated in Oct 2013 with a $7.7 target and stock was close to 5.8 around the time..the value has since then gradually increased based on positive news flow from the company to $9.01 before the company shooting itself in the foot and listing at a 34% discount wiping overnight value from the stock.

The significant drop now to $4.5 is due to the reasons outlined below..

Negative sentiment and the company losing 34% of its market value on NASDAQ listing. This is a fact that has happened and stock price fall reflects that. Should the analyst ignore it?

Vulnerability to corporate take over. Because the technology has not changed and the company as per prospectus still aims at delivering its clinical and commercial milestones timely, the stock price falling does leave the company extremely vulnerable to this. Huge risk and has to be accounted for in value somehow, which explains the higher WACC.

Expected need for additional funds in CY17 if they don’t do a partnering deal..

Expect overhang to continue for some time till company delivers on clinical and commercial milestones.

There was an event and though fundamentals haven't changed other things surrounding the company have changed. This needs to be accounted for by any analyst worth their grain.

The report is balanced and while critical of the funding, I do not see that the investment thesis has changed. Nor the methodology.. still using DCF.. unlike some others out there who suddenly have dropped using DCF to get ridiculously low targets..

This value is not set in stone. If company meets its goals, stock should recover. I would look at this a s near term target. Long-term would still believe the company is worth much more.

You want to be critical of brokers then be critical of all of them then just picking some personal vendetta with the minority who are pro the company.. I did not believe it before but now I can see why people on the forum think you are overtly on the pessimist side..

I would not believe a broker who tells me company discounted itself by 34% and then stock price dropped even more, but I have blinders on, don't care what the company does and still will maintain $9 target.. which would be some ridiculously 400% upside from current stock levels.

I can visualize the company delivering on milestones and at least reaching the $4.5 level over the next 12 months..