valutech research

VCR - Ventracor Ltd.
Shares in this company showed a steady rise from 60¢ in September 2002 to over $3 in August 2003 but declined to 55% of that level by June 2004 when prices again increased as optimism in the technology and its commercialisation increased. Following October 2004, prices fell over 50% before recovering again. The company has good technology and the recent announcement that the company is receiving revenue from sale of units used in clinical trials is very positive as well as the recent announcement of CE Mark approval and coming trials in the US. The company has a market cap of $240 million following recent capital raising suggesting that there are significant expectations for the future. If the timetable for future developments is not met, there could be falls in the share price in FY2007 but currently there appears to be some optimism for the future (prices down 20% in 2005, down 12% in 2006 associated with share issue raising $52 million and market correction and down 14% in 2007). Company is gaining revenues and despite losses associated with current stage of development cycle, there is good potential for prices to increase once value of company is recognised by the market. (1/4/07)