|I'd wait for NRM to hit $1.00, you probably saw this:|
NP says analyst strokes Neurochem with $1 (U.S.) target
2007-01-05 09:05 ET - In the News
The National Post reports in its Friday edition that Neurochem traded at its 52-week high of $29.99 (Canadian) at the end of November. The Post's Jonathan Ratner writes in the Trading Desk column that on Jan. 1 the stock closed at $26 (Canadian). Thursday the stock closed $21.38 (Canadian). Jefferies & Co. downgraded Neurochem on Wednesday. Brean, Murray, Carret & Co. started coverage of Neurochem with a "sell" rating Wednesday. Mr. Murray expects Neurochem stock will trade down to $1 (U.S.) in the next six months. Neurochem closed at $18.23 (U.S.) Wednesday in New York. "We view Neurochem's recent rise in valuation as totally unwarranted and believe this offers an ideal opportunity to sell shares at a price that is about twenty-fold higher than our fair value calculation," said Brean analyst Jonathan Aschoff. Mr. Aschoff is also concerned with Neurochem's financial position because he expects Neurochem's Alzheimer's drug, Alzhemed, to fail in both North American and European phase III trials. As a result, the analyst does not expect Neurochem to secure a marketing partnership for the drug or generate any sales revenue from it. He also believes Neurochem's Kiacta drug is a dud.