Institutions that recently bought shares in Cellestis when founders Anthony Radford and James Rothel sold down are hopping mad.
An outpouring of emotion follows our disclosure that Queensland-based equity risk rating agency Rapid Ratings reckons Cellestis is worth only $1.99 a share.
"No one (from the agency) spoke to me," said Cellestis managing director Anthony Radford.
And he reckons no one from the company knew that Rapid Ratings, which is 76-per cent owned by Collection House, was planning a downgrade.
Cellestis shares skidded 10 per cent to $2.42 yesterday.
It was a public holiday in Queensland but we tried our best to track down Rapid Ratings chief Patrick Caragata to chat about the
downgrade. Patrick was in New York but we managed to speak to flack Larry Schlesinger.
He told us that Rapid Ratings had not spoken with Cellestis management at all.
Rapid Ratings doesn't bother getting feedback direct from the company before it deals its downgrades. AdvertisementAdvertisement
Instead, said Larry, the agency relies on using software that analyses the company's historical financial data.
Radford's description of the analysis?
"Procrustean".
"If you think that one size fits all, you are going to discover that there isn't such a thing as an effective biotech company," he said.
He insists investors have been kept fully informed.
CST Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
