the sce report, page-11

I've been quite surprised at the level of dissatisfaction directed at the SCE report of late, and the conclusion that it is to blame for the current SP.

If the SP dropped upon its release, you may have a case. But within a couple of weeks of the report being published the SP had gone from 12.5c to 17.5c, before sliding to current levels.

I don't really see how any analyst taking an objective look at the company in May 2010 could leave out the possibility of a CR.

We had about $10M at end of Dec 09, and cash burn of about $700K per month, so by the middle of May we can assume cash sat at about $7M + $1M from the Quigley ann in March, or 11-12 months worth of cash burn.

If you are projecting a valuation and SP target over the following 12 months and the above assumptions lead to there being no cash by end May 2011, and you have estimated the cost of an Oxy Phase II/III trial at $5-8M, you surely have to address the company's cash position. Yes, cash could come from a range of different areas before you need to raise additional funds, but none of those are by any means certain. What to do? Flag the possibility of a CR. At what price? You could hardly say the company will be able to issue shares at 20c or 30c with the SP at that time sitting at 12.5c, so you do the sums on a discount to the prevailing price, i.e. 11 cents.

Surely the net result of the report has to be positive. Yes, they flagged a possible CR of $15M, but they also valued the company's main areas of business at between 40 and 80 cents.

I think we have to look elsewhere for reasons why the SP is where it is at the moment.