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No. of Recommendations: 3

I was being sarcastic. Broker downgrades when he expects $30 in 12 months, and it is currently selling for $18, and that the stock is sorely undervalued that is selling for less than the value of its royalty income alone.

Cause for concern about any broker using that sort of logic to downgrade.

Is about as sensical as the broker on Elan putting a hold on the stock with a price target of $14. An upgraded hold, I add. This while the stock was selling at $18. Believes one should hold a stock that he anticipates is really overvalued, yet upgrades it.

I don't have any issues with PDLI. It is selling for less than the value of its royalty income stream, and that is a royalty income stream that does not include royalties at all for two potential blockbuster drugs just now coming to market, much less anticiapted label expansion for other drugs, and has no value in it at all for 2 very possible blockbuster drugs, and the remainder of the pipeline, plus presently marketed drugs. The broker specifically cited daclimuzab. That is a drug in phase II for MS and is a very interesting drug, but I've put it down as more speculative.

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