foster stockbroking report, page-3

The report uses far to conservative assumptions.

Royalty of 6% for LANI? I would be shocked if BTA accept anything less than 10% i.e. total royalty 20% to be split between the two companies.

LANI also has the potential to gain the majority market share of the stockpiling markets... if successful this should be taken into account.

Around 90% of these court cases are settled before they actually hit the courts... I would expect to see a revised royalty rate along with a lump sum payment.

HRV trial will commence this year and not 2008 unless there's been an adverse development, this is a product with huge potential. Could possibly be their biggest product, royalties again could be up to 20%.

Long gone are the days BTA can only negotiate a 7% royalty. The risk for a marketing company is far far less so 20% royalty rates for their future products are a more reasonable assumption.

Anyhow, a well written report by the analyst and should be commended. They have got the message across well even though some assumptions are conservative.

GO BTA!!