Yep good points Titans - I am sure MST will recount the chickens once they hatch but not before then. Expecting it to be a whole lot of chicken and hopefully put KFC to shame!
It got me thinking about why they would get the MST valuation. My view is its effectively PR to start educating the market, attract institutional investors and build exposure. This is the first published valuation I am aware of outside HC, so gives a snapshot of the company especially for those who are probably thinking ASX:RAC is an insurance company .
It is generally common sense to start waking the market up now (using valuation reports), rather than when trial readouts are released. This then sets a base price and shows positive and ongoing re-rates, building the profile and attractiveness of RAC as an investment to institutional investors / Pharma's. The alternatives are:
1. Not release a valuation (fly under the radar keeping SP down, and giving Pharma better bargaining power - if they even notice RAC):
2. Give a valuation in the $$$billions and not be taken serious.
Think this is probably the right balance and a good starting point to start informing the market. Perfect timing as we are close to six months out from next rebalance of ASX 300 so also need the required liquidity even if RAC passes on Market Cap requirement.
As Dr T suggested take it with a grain of salt as MST will update as Q1 announcements roll out. Remember slow and steady wins the RACE! Pardon the pun
RAC Price at posting:
$2.93 Sentiment: Buy Disclosure: Held
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(20min delay)