The decks are cleared, and the market reaction...

Hi all

Great to get the quarterly out of the way today and not at the end of the month like alot of the speckies on the ASX.

Now that this has been released we can move onto the juicy announcements about the progress of the company's business development goals for the rest of 2014.

The market reaction is interesting and I think many are misinterpreting what todays announcement is highlighting.

Firstly, confirmation that westcoast had a terrific 2014 and the plans for a better 2015 are being executed.

I think many are looking at the net operating cash loss being $1.3m more in 2014 than the previous year as a reason to sell the stock.

Well of course the loss will be bigger!!!

The company had to pay $400k cash as part of the Novadel acquisition, and also there would have been an increase in one-off costs to get this deal over the line and not to mention the formation of MRC with London Pharma and the compiling of the CTD (and associated manufacturing of Artimist). And as I mentioned there was a significant build up in inventory to stock the DC in Brisbane.

And of course, the company would have spent a lot of money once the acquisition of Novadel was finalised to understand exactly how far that company had progressed its product range, engaging consultants to help with this, and not to mention putting together the asset packs for the upcoming licensing agreements.

You have to spend money to make money and the company has spent its money growing its operating business and getting its main products ready for sale and increasing the value it can obtain for these.

So IMO the people that are selling today are a bit short-sighted and do not recognise that the "loss" announced is because the value of the company has increased at the same time!

Good luck all