is bta undervalued?

BTA current share price do not reflect the true value of the company. In fact it is seriously undervalued because your CEO Peter Cook had been talking down the company. Even when reporting the tripling of production capacity, Peter Idiot created doubt in the demand for Relenza by stating the increase in production will not affect BTA’s cash position until at least after June 2010. Although technically correct, the idiotic statement is contrary to the shortages in Relenza demand reported in other materials posted in HC.

Many HC posters chanted the mantra they are happy with Peter Cook as they (the posters) like to see a steady share price instead of a fluctuating sp but failed to explain the correlation between Peter Cook talking down the company and a steady sp.

Please note I am not advocating Peter Cook to talk up the market – just report news and release price sensitive news to the market in accordance with BTA’s legal obligations. In fact let me show you my observations that Peter Cook in talking down the company had created volatility and undervalue BTA.

On 23 Apr, after reporting a bumper Relenza royalties and a series of positive broker reports the closing sp rose from 90.5cents on 23 Apr to $1.58 on 27 Apr. On 28 April Peter Cook talked down the company – that the company was over valued and thus causing the sp to drop. (See: http://www.news.com.au/perthnow/story/0,,25397672-5017962,00.html ) The closing sp was at one of its low point on 30 June $1.195 Is it sheer coincidence that a lower 30 June sp resulted in a greater number of executive options?

In the month of July, the sp increased sharply from the June 30 low of $1.195 to $1.62 on 22 June. On 23 July GSK report clearly shows a great demand for Relenza. This proved Peter Cook is at best an idiot. Shareholders should question why the idiot intentionally talked down the company in the 28 April news article implying BTA was over valued at the $1.58 closing sp on 27 Apr.

Despite the good 23 July GSK report, the idiot intentionally talked down the tripling of production capacity and misled the market to question whether there is a market for the increased production until at least June 2010. Despite Peter Cook continuing to talk down the company, the market still valued BTA with a closing sp of $1.88 on 24 July proving conclusively Peter Cook had no justification to imply the company was over valued on 28 April.

In fact, the sp continues to trend upwards closing at $2.06 last Friday. Many HC posters including I posted that the current sp seriously undervalue the company.

I believe IF NOT for the idiot Peter Cook talking down the company, the sp would be a lot higher. The above facts show that Peter Cook had created sp volatility by talking down the market and by his numerous failures to announce price sensitive information to the market in a timely manner.

I agree with many of the HC posters that in the long run, the market will come to recognise the true value of the company. If and when Peter Cook decides to stop talking down the company and to inform the market regularly of price sensitive information, the sp will rise in small spikes and achieve its true value instead of a depressed sp and greater volatility

There are many good HC posts on Biota such as:

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=956398&msgid=5328967

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=952698&msgid=5306582

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=954564&msgid=5317525