Companies aren't meant to use NZX announcements for PR purposes. There is a line between serious announcements and self promotion.
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Winner, the reality for you, is that you may choose, as we all may do as individuals, to invest in Pacific Edge or not, with whatever criteria you may first wish to apply, just as with any other investment.
It is not ones individual investment criteria that determines the weighted average cost of capital (WACC) for any particular company, it’s a determined variable by analysts and an important one as it does influence valuations, but there are actually methodologies that should be attempted.
The only reason I posted the PWC analysis is because it is readily accessible on the internet for readers of this thread.
PWC last year applied a WACC of 12.1 for Pacific Edge which at the time I considered very high and still do, since then PEB have progressed further. I’m considering a range between 11.25 and 11.75 to apply for a HY15 valuation.
If anyone requires independent advice in this area, they can contact their broker for the rationale of what WACC they apply and the analysis behind it.
When does the sales report come out. All I see is smoke and mirrors at the moment. Time for some hard numbers.
I understand all that MAC and not at all rubbishing
From an 'investment' point of view I stand by taking the view of coming up with a value that will give me the return I consider reasonable. For PEB based on all the revenues / margin / investment assumptions I would be happy enough buying more up to 120 which would give me a 15% rate of return.
But I have a heap of PEB (free ones) at the moment so don't really need any more ....but sub 90 might tempt me ....if I have faith in my numbers that would give me a 20% IRR over time
I think it’s a good motivating recognition for all those working hard in the labs and something for sales folk too to affirm all that honey they pour into the ears of HMO managers.
I’ve been looking about for other biotech sector investments and have to say I’m struggling to find another with both Pacific Edge potential and a present need for capital.
Is this the quote you refer to? "Mr Swann is confident the company will processing ''several tens of thousands of tests'' next year." - link to article.
As someone suggested the other day, Swann did not refer to sales, rather "tests".