RBAlpha Securities have really made an excellent effort in their...

RB

Alpha Securities have really made an excellent effort in their research report. They have also exercised restraint in making comments on those factors that are not clear, neither have they attempted to make extended year revenue estimates.

A complete report usually contains a comparison with peer companies and Alpha has sparingly tried to do this (Section 5.4). Which companies should they use? Shareholders are looking forward to the establishment of plasma fractionating facilities in S E Asia which we project to have enormous potential and hope will provide a dramatically increased revenue stream. In that case the peer companies should be Baxter, CSL Behring, Octapharma, Talecris, Grifols, etc, despite their large scale.

However, Alpha, thinking differently, has clearly considered only the present revenue generating product streams, gels and diagnostics. Hence they have chosen a very different sample of companies for comparisons none of which are competitors. Some of these are medium size and well established. On that kind of basis how can one say that NSP is undervalued? They have been selling gels for 25 years and still not made a profit. Nevertheless the product has improved enormously and it appears to be gaining some foothold in the US market. I notice that distributor BioExpress gets a solid comment in the report while larger contractor Thermo Scientific gets not a mention.

Juke