...We Welcome You To The Resverlogix HUB withIn The AGORACOM COMMUNITY!

Free
Message: Some final thoughts on analysts in general and Zacks in particular.....

Perhaps I'm being unfair here....

I've posted before about my attitudes regarding professional analysts and the investment industry as a whole...and how it is often (imnasho) designed to separate retail investors from their $$$. That opinion still holds, the ocean that is the capital markets is shark infested.

With that being said....Broker Dealers and Investment banks often have cozy relationships with public companies. They underwrite an offering, be it an IPO or a secondary, and the firms doing the underwriting often then put out buy reccomendations...which to my way of thinking is a clear conflict of interest.

Now you have a company like Resverlogix, struggling to get itself noticed in this ocean. They've secured their financing via placements without going the secondary route. Instead they've been able to raise the capital they need by attracting a very wealthly (very? how about unbelievably) investor in Kenneth Dart through his investment arm Eastern Capital, and with Hepalink.

What incentive do the JP Morgans and BMO's of the investment world....what incentive do they have to cover and attract attetnion to RVX? They have other companies employing their services....and money invested in RVX is money that could have gone into a stock that they're underwriting.

So Don and Resverlogix has to go another route....they have to employ the services of outfits like Life Sciences and Zacks.

At the end of the day, one is as good as the other I guess....except in one important respect. Rightly or wrongly, and I would argue wrongly...the investing public puts more faith in the analysis of a major firm like BMO than they do in that of Zacks or similar type firms.

Ultimately the proof is in the pudding, to use an old hackneyed phrase. If BOM succeeds it won't matter one iota who was covering the company.....with the demand that would come from a drug that does what RVX-208 is seeking to prove it does, the sky is the limit in terms of the market potential.

Hopefully enough investors will read Zacks report, I've read it and it is very well presented imo...and judge it on its merits as opposed to dismissing it because its not from a major outfit.

I will say again, given how tightly held I perceive RVX shares to be held, I don't think we need to see much in the way of increased demand to send this stock flying.

Share
New Message
Please login to post a reply