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To meet the liquidity requirement to maintain inclusion in the FTSE-100, the company must make a share placement in 2013, raising cash but also creating an overhang risk that may cap near-term share price performance.
Investec said: This increases the free-float to around 65%, leaving only Virgin Group's 35% stake which, (rightly or wrongly), we assume to be a "quasi-permanent" investment rather than presenting a private equity style "overhang" risk.
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Implant overhang risks adverse soft-tissue interaction while uncovered cut bone surfaces (underhang) risks increased postoperative bleeding or development of heterotopic bone.
It added, "Given the potential risk and overhang associated with protracted litigation, little upside to current 2006 earnings forecasts, and a lofty 30 times calendar 2006 price-to-earnings multiple, we would remain on the sidelines despite the recent pullback in the stock".
That overhang could pose catastrophic risks if the – system were to fail or had to be abandoned for some reason.
The claim seems credible since buyers are unlikely to gamble right now by risking inventory overhang.
"Macroeconomic Risk and Debt Overhang". Chen, Hui, and Gustavo Manso.
Nielsen CS, Nebergall A, Huddleston J, Kallemose T, Malchau H, Troelsen A. Medial Overhang of the Tibial Component Is Associated With Higher Risk of Inferior Knee Injury and Osteoarthritis Outcome Score Pain After Knee Replacement.
"It is not advisable to ignore the potential risk that the present overhang may continue to weigh negatively well into the future," the group said.
The OECD reckons that any global economic recovery will come slowly, held back by geopolitical risks and a continuing overhang of capital investment.
It overhangs the adjacent machines where the relative risk to workers was zero.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com