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If anyone bailed because of that price target they’ve got what they deserved, they aren’t investing they’ve been gambling.
If this price slump is solely down to this Finncap debacle then that should surely go down as one of the most ridiculous cases of ‘tail wagging the dog’ I’ve ever known.
Thanks for sharing the response, Demon. You little divil, you. :)
So good to know that IR actually respond. Hear it so often elsewhere, "sent IR an email weeks ago and still no response."
I'm aware how recent events have impacted investors in a negative fashion.
Personally, i've taken advantage.
Such is the market and its dynamics.
If ever there was/is a reminder to focus on belief in fundamentals and to not be swayed by singular pricing movements - it is now.
Yet another reminder.
Agreed. CF has always stated from the outset that he wants steady growth and no volatility. We all understand it’s AIM and sometimes you can’t control these things but having your own broker being the master of your own downfall won’t be tolerated. I’m surprised people pay that much notice to the broker notes to be honest. They’ve always been inaccurate from the get go.
Agreed Moniman, I don’t think CF suffers fools gladly. If it’s not the P45, then a considerable hoof up the a**e.
I'm surprised Orph say "Open Orphan can’t control the content of FinnCap’s research", well why appoint such a bunch of 5 year olds as the joint broker if they can't be bothered to update and check their own research notes. P45 coming Fincraps way I would assume, signed CF!
Finn Cap, not fit for purpose comes to mind, a 5 year old could have done better.
This week is a moment of opportunity, partly thanks to market dynamics and a disconnect between PLC and broker (intended ot unintended).
Fundamentals remain the same. Take advantage of SP waves and broker messaging.
DYOR
Hi DumbledoresBeard,
I’m guessing they do check the board. I emailed the following yesterday and got a similar response to Demon & Wondergoals. Top marks to ORPH and their attention to their investors, I am impressed.
“Hi Open Orphan,
Please will you have a read of the Open Orphan LSE chat board to gauge your investor’s feelings. ORPH, as you, know is well supported by its loyal long term holders, of which I include myself.
You will note a bit of disquiet regarding your broker, finnCap, leaving their forecast of 28p unchanged, albeit with “substantial room for upside”. There seems a large disconnect between the current SP and their forecast which has been perceived as having a detrimental effect on the SP performance. I appreciate, of course, that there are a lot of other factors to take into consideration.
I would be grateful if you would have a review of the finnCapp report.”
demon - thanks, I received similar having emailed them yesterday. So the experts at finnCap had a target price last Oct of 28p when the sp was around mid 20s. They got that all wrong too then didn't they! And then to reiterate it this week having made no adjustment for anything which has happened since then or that is in the pipeline (it is a target after all, so by definition should be forward looking, taking into account all of the company's prospects) is on a spectrum of lazy to incompetent.
hopefully that episode is now behind us and the lows touched earlier today will prove to be the springboard to higher highs.
Thanks for doing that Demon and sharing reply.
I emailed IR this morning. Response received tonight at 6pm below:
Thank you for your email to Open Orphan. I don't believe the setting of a date for a court hearing for the reduction in share capital is likely to have an impact on the share price - this is simply a process that takes place to eliminate the negative reserves so that the Company can undertake the distribution in specie for the benefit of shareholders - and this is part of the process agreed by shareholders as the recent AGM.
The movement in share price is most likely to have been caused by a reaction to a note from finnCap issued on Monday which included a target price of 28p. Unfortunately, Open Orphan can’t control the content of finnCap’s research, but the team has noted that their target price and forecasts have not been updated since October 2020, and as such is long overdue an update. The Company has since had a conversation with finnCap and we’ve seen that they’ve today issued a new note (see below) saying that their target price is under review – effectively removing the old 28p price target.
Just to reassure you that since October last year the Company has made very good progress and on Monday morning Open Orphan announced a further £3m challenge virus manufacturing contract. Despite finnCap’s note on Monday nothing has changed Open Orphan’s expected performance for the business or the exciting opportunities it has ahead. Cathal and the team remain highly confident about Open Orphan’s prospects for the future and they look forward to updating shareholders on how they will further increase shareholder value from their non-core assets, the newly launched Disease in Motion platform and the development of new challenge study models.
Thank you for your support and the Company certainly acknowledges that 28p is not reflective of the true valuation of the Company or the ambitions that the team have for Open Orphan going forward.
Kind regards,
Paul
Paul McManus
Managing Director