My 'read' of the Maxim analyst supposed downgrade to a Hold, is understandable and not necessarily troubling.
Firstly, Maxim has been a 'lone' follower and supporter of ACT for quiet awhile now. That suggests to me that they may have some insights into the company, that others "discovering' ACT/OCAT may not have.
However, I don't feel that the downgrade is necessarily because of that dynamic, but because it seems to me that any responsible analyst, who previously had a BUY/ACCUMULATE recommendation on a stock that is now trying, possibly unsuccessfully to raise 50 million dollars or so, at or near the currently trading price apparently, and has been silent for some two weeks about it's success, has a professional obligation to speak out.
The analyst, imo, is being responsibly professional in his cautionary observations.
I would also note that he clearly leaves open the possibility that all could very well being going okay with an offering of this size, for a company in this stage of it's development, but that it's taking time.
(Quite possibly the upper 6.00 to the mid 7.00, may well be an indication of such?)
While Wotton said he would be 'ruthless', I didn't read that to mean careless. While, as I've posted before, imo, new financing/institutional acquisition of shares/jv or buyouts, historically start to appear as confirming data starts to emerge in Phase 2 clinicals; that might suggest that this aggressive financing attempt on the part of the company may possi ly be viewed as 'premature' and to 'risky' at this time.
On the other hand, those better able to judge the safety and efficacy of what's been accomplished so far by OCAT, are in a far better position to evaluate than we are. Couple that with the calibre of the the scientific/management/Board and advisory individuals of stature in the field, suggests to me that their influence could very well end up being positively profound in
securing a successful financing.
Let's not forget, we are still negotiating, apparently, with nasdaq for an uplisting and that, in my thinking, has to be a crucial factor when asking other investors to 'risk' millions on a phase 1 biotech.
A final thought on Maxim. I think their motives are 'honest' and professional. Let's not forget that Maxim was a founding member of a lobbying and support group,for regenerative medicine in Wash., D.C. a number of years ago.
