fat prophets posting

And it is not one of their best postings. Actually, it is a pretty useless one - they basically say "it is a good stock, nothing has changed in the outlook despite the fall in the share price, it can be a great stock if there is success for ATC, but there are a lot of risks" -> go figure what to do next ... Don't even know why I am reporting it ...

Extracts below -

Although Avexa’s share price has fallen substantially lower this month, the move does not represent a fundamental change in the outlook for the company. Indeed the company’s phase III studies are progressing well, which is edging ATC ever closer to commercial release. ATC is of course Avexa’s key development, which has the potential to provide the company access to the multi-million dollar HIV vaccine market....

Management recently announced a renegotiation of the license agreement for the company’s ATC program...

Although this is dilutionary to current shareholders, Avexa will benefit from lower future royalties and the removal of milestone payments. This therefore provides Avexa with greater upside exposure to ATC’s potential commercial success....

Investing in biotech stocks such as Avexa is inherently risky. If the company’s product achieves commercial success, the potential upside is formidable. However, the downside risks are also significant, which typically results in a good deal of volatility.

While we believe Avexa have a good chance of achieving success, Members should be cognisant of the risks and ensure capital is allocated accordingly. Avexa will remain held in the Fat Prophets Portfolio