how wrong can you be

Selected comments from the analyst's reports posted on the Photon Website in early Feb this year following the Naked aquisition. Yes the market has moved a bit in that time - but according to management they will deliver their forecast results for 2008.

So how wrong are the experts to date:

***Credit Suisse - 6 Feb 2008

Rating OUTPERFORM*
Price (05 Feb 08) 5.75 (A$)
Target price (12M) 8.75 (A$)
Market cap: 440 (A$mn)
Year avg. monthly trading value 9 (A$mn)
Last month’s trading value 7 (A$mn)
Projected return:
Capital gain (%) 52.2%
Gross yield (%) 6.9%
Total return (%) 59.0%
Excess return** (%) 30.4%
52-week price range (A$) 5.05-6.97
* Stock ratings are relative to the relevant country index.
** Relative to market. (see disclosure appendix for full
description of CSEA rating system.
Valuation: Our DCF valuation has increased to $8.67 from $8.17 per share as a result of this deal (naked). We have left our $8.75 target price unchanged.

***UBS - 5 Feb 2008

Buy, Price Target A$7.95
Our FY09 DCF-based Price Target remains unchanged at $7.95. Our previous valuation included a premium for future acquisitions which has now been
crystallised. We continue to rate Photon a Buy.

***JBWERE - 5 Feb 2008

Earnings and Valuation Impact:
• We increased our FY08-FY10 EPS forecasts by ~3% following the acquisition of Naked.
• Our Target Price has been reduced from $7.35 per share to $6.95 to reflect the recent correction in the equity market. Our new share price target reflects a FY09E PER of 14x. This is not a demanding PER assuming PGA can deliver our forecast EPS growth.