Q: Hi 5i, First thanks for the quick feedback on Wells filing delay. I too thought it had marginal impact. However an analyst from RBC put this out:
“The current situation suggests management may have overlooked certain aspects of the complexity. Until we receive further clarity, we include a 50-per-cent contribution of Circle Medical in our valuation ($68-million, or $0.27/sh) and have also adjusted our valuation to reflect the current market conditions.”
Seems pretty inflammatory, can you help me understand where he gets 50-per-cent contribution?
Thx again
“The current situation suggests management may have overlooked certain aspects of the complexity. Until we receive further clarity, we include a 50-per-cent contribution of Circle Medical in our valuation ($68-million, or $0.27/sh) and have also adjusted our valuation to reflect the current market conditions.”
Seems pretty inflammatory, can you help me understand where he gets 50-per-cent contribution?
Thx again
5i Research Answer:
It is more a question for RBC but seems harsh to us considering only a 2.7% total company impact...