In the last week of July, Coppo included in “Australia’s most beloved equity market report” a call from his colleague and sales analyst. John Estherfollowing the release of PAR’s quarterly figures, highlighting its speculative price target of $1.90 for the stock.
The house view of PAR was positive, its cash burn rate “wasn’t as aggressive as we previously believed”, leaving the company with “ample cash” in the short term.
It was one of four appearances in the Coppo Report over the next fortnight, in which he mused a few days later that the company’s 3.6 percent short-sellers might be “getting a little nervous” given the 20 percent rise in the PAR share price since its inception. last entry.
On August 1, Bell Potter’s knowledge of the company was developed. For example, the executive director of PAR Marco Polzzi he had visited the Bell Potter headquarters “a few weeks ago and it was very impressive”.
“I would say it’s a question of when, not if they do a deal with a major drugmaker,” he said. An addendum helpfully added: “Disclosure I own PAR.”
On August 3, the shares hit an intraday high of $1.81 per share. PAR “continues to rise,” Coppo explained, and he believes a big buyer could be interested in the “very cheap” shares. In fact, PAR had been educating potential investors at its international roadshow a few weeks earlier, Coppo said as a volunteer.
After an 85 percent surge, PAR shares closed on August 8 at $1.91 each, clearly hitting Bell Potter’s target price. Still, Coppo saw continued greatness for PAR, given that his recent studies would soon enter peer-reviewed publications, providing “important catalysts for potential future development partners” and commercialization.
Well, color us surprised! Who else but Bell Potter would have been hired to handle PAR’s new $62 million capital raise, announced days later on August 11? Although the offer price of $1.30 per share, a bargain 35 percent discount, must have caused some red faces in the office.
But we’re guessing that after the fundraiser, PAR is now indisputably “big money.” So too, we suppose, Bell Potter.