You're right on the tax impact but not necessarily the...

You're right on the tax impact but not necessarily the R&D/valuation. Yes, R&D of course drives growth but it's also possible that excessive R&D could be translating into inefficiency.

Valuation theory isn't an exact science, many people/instos wouldn't buy CSL for instance as the PE is too high or the dividend yield is too low. No one is suggesting R&D should be cut totally but it should perhaps be more efficiently run. Would be interesting to know what the opportunity cost of either scenario would be according to management.