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Not sure where you are looking, but both google & the ADR site say PRTC up 1.22 USD today & no sign of negative territory today.
https://www.google.com/finance/quote/PRTC:NASDAQ
https://adr.com/drprofile/746237106
Some big A trades going through today. Let’s hope it’s close to £2.50 before the tender closing date. Any chance they would revise it nearer the time to £2.80 or £3. Is that possible or would the special dividend just be paid?
Yes I know, 6% down. They just rarely match up by day but do pretty much over a longer period.
Down in the US Honestly you would think the stock market was corrupt
A bit of late afternoon price action.
Thanks for the headsup!
Seeking Alpha's Quant System gives PRTC a Strong Buy rating of 4.55 out of 5. In my experience (and I've made investment decisions many times using it's data) Quant is a good indicator of the future success of a stock both near and longer term, although I'm sure to some degree it's a chicken and egg situation as people invest due to the recommendation and hence that makes the recommendation more successful.
For those of you that haven't heard of Quant, Seeking Alpha describe it as an objective evaluation of stocks based on financial data, price performance, analyst estimates, and more. They claim that following it's analysis significantly improves returns against the market average - More info here https://seekingalpha.com/article/4263303-quant-ratings-and-factor-grades-faq
For the record, the 2 Wall Street analysts covering PRTC also give it a Strong Buy rating at 5 out of 5, together with a 12 month price target of over $55, which is just over 100% upside.
I'm happy to hold and wait.
I imagine DZ realises they have miscalculated?
Yes, $27.54 & 1:10
Best get info on ADRs here:
https://adr.com/drprofile/746237106
These US sites can make you look like a right dipstick
27.54 now apparently
It finished last night on the Nasdaq @$30.91 divided by 10 =3.091 divided by 1.26=£2.45
The septics are not waiting to miss the bargain basement offer
Someone mentioned on the forum that it might be an idea to take the tender in the hope the price drops and then to reinvest on the drop Any thoughts?
I agree Dallo, but there won't be any shortage of short term traders who are just hoping to make a quick 10-12% on 220p.
It would be quite amusing if they only got to tender 30-40% of their holding.
Alwaysone
My theory is that if private investors like us tender at £2.50 we will get 100% filled.
This is on the basis that none ( or very few) of the Institutional investors ( 70% ) or management and connected (10%) will sell at the tender offer leaving just c20% of shares available for tender .
So if 70% apply of this cohort, then they will be filled 100%.
70% is a big ask imho given the sum of the parts valuation of Puretech is conservatively over £4/5.
That is why I feel management got greedy and tried to strip out weak holders on the cheap thereby increasing the % holding of those who shareholders who refuse the offer.
Don’t forget. It might only be 14% of your holdings at £2.50. Then hope this profit isn’t eaten into by a drop below £2.20 on the balance of shares.
I do believe the offer has put a floor of £2.10 on the price though, for the short term at least.
Lesley
I have been having good conversations with Kana in Puretech Investor Relations until I vehemently criticised the Tender at £2.50.
I have received no response and appear to be on the naughty boys list.
Childish.
On Wednesday i very politely got in touch with DZ and expressed my opinion re 2 50 tender offer.In my opinion it was a kick in the teeth for long term investors and i was disappointed Thats all i said.Result? Blocked by DZ.Bit churlish i thought
I now , humbly, confess that I know diddly squat about the Stock Markets after 50 years as Puretech's share price drops to 212 p today...38p below Tender price
Bizarre.
Good challenge.
I like this board. Informed, knowledgable, balanced and respectful.
Can I persuade a few of you to buy into my other invested Co's and bring some sanity (and intellect) to their boards which are badly in need!? ;-)
I think that some of the posts here are a bit unfair to Ms Zohar. Yes I agree she has made some mistakes but personally I think the only mistake she has made is to give in to pressure from the likes of Invesco and agree to sell royalties, hive off more in house drugs into separate entities and do buybacks to try and boost the share price in the short term. Cash piles are simply not appreciated in the current market. Her original strategy was to use the hub and spoke model to fund the in house jewels and actually this has gone very well. Most of the duds referred to are still trading and haven’t lost Puretech any money and to call the in house drugs early stage is not correct - we have a number of stage 1 and stage 2 drugs as well as platforms that will keep generating more candidates. There is immense hidden value here that will come out in the next few years and the last thing I want is a take over.
Biginersguide - That's exactly what it is. A share by back programme at a small premium to the SP aimed at taking out the RI base. Nothing more.
As Dallo & Malt suggest, change at the top required.
Thanks dallo and malt.
You may well be right and an outright bid could be the outcome. The reaction so far has been underwhelming and it does seem to show inexperience on the part of Ms Zohar. Now I am in I intend to stay the course. You may well be correct about the other spun off companies but I suspect one or more could well ultimately be successful and it only needs one at a time!
Malt
Great Post
My views entirely as Puretech as a developer of drug programs farms out the risk through the hub and spoke model and its track record is one mega success ,Karuna and loads of duds with Vedanta possibly going to be a winner .
So Karuna has garnered $1 billion from Karuna including the upcoming c$300m from the BMS takeover and Puretech and royalties of $400m from
Royalty Pharma plus future additional Royalties milestone payments and sub licensing income.
The rest of its founded entities are utter failures apart from perhaps Vedanta who may come good.
It's own drug therapies are interesting but still at a relatively early stage .
The market in the US and the UK hate companies that act like fund managers and that is why they assign a risk premium to these unusual entities
There is no guarantee that Zohar will not exhaust cash resources over the coming years on the in house drugs so that is why the strategy needs to change and only a takeover will clear out the spoke entities and concentrate on the primary business and stop Zohar from acting like a Pharma fund manager in high risk drug development companies.
I keep thinking of the $13 billion she left on the table in Karuna.
The perils of appointing a child of the founder of a company to run the business.
Anyone see Succession the great TV series.
Anyway Puretech still is totally undervalued but needs new management and a focused strategy.
This will happen soon imho
I have been a shareholder here since 2020 and it has always looked great value, others have clearly been holders a lot longer than that. We all will have read many posts trying to fathom why the mkt cap seems so much lower than the sum of the parts, particularly when a large part is cash, but nothing seems to change . It is difficult not to doubt whether this hub and spoke business model is wanted, surely professional biotech investors can get the risk diversification they want by investing in a portfolio of pure play biotechs eg Karuna et al and don't need or value the risk mitigation claimed for the PRTC model. This leaves PRTC looking similar to an Investment Trust with a highly concentrated portfolio of assets at different stages ,perhaps like a Syncona or RTW, which also trade at massive discounts. Maybe they should dump hub and spoke and change into a conventional biotech retaining ownership of assets through to market, is there a hint of this happening as they have held onto LYT100?
Soundman
Mystifying drop today as there is a clear arbitrage opportunity to buy at £2.20 and tender the same amount for a 30p gain.
However it is never that simple in the markets so what's the story .Is the SP being manipulated downwards to bolster the take-up in the Tender or is the market not impressed by the management's lack of daring and ambition.
A more aggressive management would back itself to use surplus funds to drive growth through a large acquisition for instance rather than buy back its own shares which have underperformed for 10 years.
Zohar boasts of taking $1 billion out of its small investment in Karuna having developed KarXT the schizophrenia drug but forgets to mention it had left $13 billion on the table.
I think the market is not convinced of Zohar's strategy and skills and I think the 70% Institutional investors particularly Invesco with 24% of the shares will exert pressure after the Tender is completed.
Just returning cash to shareholders at a low SP is an admission by management that it hasn't any ideas to drive growth using the large surplus funds and is content to plod along hoping Vedanta and its own drug therapies come good in a few years
Hence I feel a takeover is the logical conclusion and maybe we may see this sooner rather than later.
I still feel the cash , royalties and other significant assets are worth north of £1.5billion.