prr rock and roll, page-15

With the benefit of 20/20 hindsight, and for those who weren't watching PRR back in early 2011, it's worth remembering what one of the key drivers was at that time.

In about Feb/Mar, a certain "investment" newsletter, with a subscriber base of about 1,500 punters issued a pretty bullish buy recommendation, largely on the strength of the Nasdaq listing. The astute subscribers piled in in their droves, ignoring the "buy up to price", resulting in the run up to 42 cents in April 2011. That was the "pump".

The subsequent "dump" was a result of the delay in the U.S. listing and the fact that the stop loss price was well publicised, placing a giant target on the stock. As the SP declined, it triggered a stop loss cascade, exascerbated by the "sell" recommendation from the newsletter's author.

The recent appreciation of the SP is a fundamentally more sustainable reaction to the improved position of the company through clinical and corporate progress, not the least of which is the forthcoming interim Phase 2b results. If PRR was a mining stock, this would be the equivalent to an announcement of the results of a core drilling program and the updated resource.

Being that this is occuring more organically, my view is that it's more likely to sustain the market re-rating, subject of course to the actual results announcement.