Lets go through these claims one at a time.
Just in March, Race posted five price-sensitive positive-operating updates to the ASX.True. All it does is tell the world that we are very active. If this is a bad thing, expect us to become wicked.
On March 9 the day it released an announcement titled Compelling Preclinical Breast Cancer Results shares were bid as high as $4.23 on a market value around $592 million, despite it being a loss-making biotech with no commercial product or trial drugs at phase III stage.All biotechs are loss-making. That is the business model. You invest money in R&D to develop a drug or treatment which is then later sold. It is like calling resource explorer companies out for being loss-making because they aren’t selling minerals, just spending money on drilling. That is their business model.
We have a commercial product (Bisantrene can be sold today in Europe under the NPP). We are not actively selling it in Europe because of the nature of the AML market there, but if a doctor wanted to buy it today they could.
Bisantrene has already been trialed at Phase III and even been approved for sale in France in 1990 so more errors from Tom.
On April 7 undisclosed insiders exercised 1 million share options at just 25¢ to leave them sitting on a $2.81 million paper profit based on the difference between the exercise price and today’s share price.This is completely false. No insider exercised options on April 7. These options were exercised by John Rothman who has not been part of Race since 2018. He knows as much about what is going on at RAC as Tom Richardson.
In February, Race posted research by MST Marquee to its website which valued it at $4.88 per share, with a disclaimer (at the bottom of page 27) that the research was paid for and Race itself had even helped the analyst prepare it.The report is by MST Access, but this mistake is trivial. All research on small stocks in Australia is paid, either directly or indirectly. Tom knows this. What matters is if the report is useful in helping you understand a company.
Another piece of research widely shared and spruiked on Reddit, Hotcopper, and LinkedIn on the biotech by a user named Wombat777 valued Race at a net present value of $75 a share and up to $135.24 a share on the potential for a big pharma buyout by 2022. Not bad, for a stock the market valued at 28¢ this time last year.Unlike Tom
@wombat777 shows his homework and all the assumptions behind his valuation. Maybe
@wombat777 is right, maybe he is wrong, but at least everyone can see how he came to his valuation. All we have from Tom is his opinion.
Overall it seem the “crime” RAC has committed is to have been a massive investment success over the last year. I do wonder if Tom might have written a different story if he had bought RAC a year ago.
