VCR ventracor limited

rivkin + others slam vcr valuation and various oth

  1. 192 Posts.
    Throughout the wider media today, many analysts are stating that the market is getting toppy with september and october being traditionally quiet months.

    Many of the newspapers today have stated that the biotech sector is particularly overheated based on the earnings of of a few.

    Even VCR themselves cionced thatit is one thing to have one or two test versions work, but for a product to work out commercially for mass markets is an entirely different ball game.

    I picked up this tid bit from Rivkin's comments tonight as posted on another forum... I don't think there is any problem in posting this, as it is merely commentary on the general market rather than specific stock recommendations.

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    >All this goes to show how illogical the market is at the moment. Stocks like OPS can take a hammering, while the healthcare index continues to rise on the back of the unprofitable biotech stocks, such as Ventracor (VCR). The broad S&P/ASX 200 Health Care Sector is on a PE ratio of 22 times, while the All Ordinaries is on a PE of 16 times. In the past two months, the All Ordinaries has rallied 6.8%, whereas the S&P/ASX 200 Health Care Sector has risen 13.7%. In the same time, the S&P/ASX 200 (the index of the top 200 companies by capitalisation) has run only 5.9%.

    What we are seeing at the moment is a rally where the best companies in the country (whose earnings and dividends have exceeded expectations) are being outdone by companies who have yet to even turn a profit, but are promising the world. This can be a very dangerous market, which is why certain rules should be followed. And this is not to say that the ludicrousness of this rally will not continue. We have seen in the past (during the tech boom) how long irrational investing can go on, and we have not approached those levels of insanity yet.<
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    I think we need to keep a level head herre and realise that VCR like many others are certainly long and short trade opportunities, but until revenue streams within grasp and the products are commercially available then the stock should be considered highly specutive.

    Perhaps worth a little more than what the instos took a placement at would be a safe bet. Above $2.25 but not much more than $2.50 ?? IMHO


    Happy trading..

    I'd say its a short term SHORT and trade the range but don't get caught with your pants down.
 
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