VCR ventracor limited

australian investors at fault

  1. 177 Posts.
    OK I'll put something out there which I know I'll be shot down for, but here goes...

    My thoughts for sometime has been that, although VCR does have problems with management communication and leadership (e.g director selling large amount of shares to cover tax obligations), I still believe that generally the company has done quite well and the primary explanation for the share price is fickle Australian shareholders.

    Apparently back in the early days the decision was made to list in Aus instead of US as we were more eager to support innovative companies. What chance of that now I wonder? And we are supposed to be proud of our biotech capacity?

    The fact is all of VCR's targets in the last several years have been met. VCR have a well proven and advanced device and is generally regarded as the major competitor to Thoratec, i.e they are 2nd in the race for this global multi-billion dollar market.

    Compare the American support for Thoratec, who is something like 30 to 40 times the capitalisation of VCR, even in the face of 5 of their patients dying due to faulty devices and unknown extent of the scope of this issue. Also given that they have an older model with a significantly lower success rate. Plus they are behind the ball with R&D advancements - VCR introduced a replaceable percutaneous lead last year and Thoratec won't have it til next year. If memory serves me correctly Thoratec's projected revenue will be about 7 times that of VCR in the next year. Heck, if VCR announced five patients dying due to faulty devices the price would be pretty much 0!

    Sorry to say this but I believe the current share price is primarily due to fickle Aussie shareholders and investment funds who are just too narrow minded to recognise the achievements and potential of this company. VCR say they can't control the share price and let it take care of itself. Although their marketing could be a bit better I'd have to say I generally agree. It's investors who take responsibility for the share price.

    OK, shoot me down now! But heck if someone can't give their honest opinion here then what are these forums for?
 
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