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It's all down to the price at the point the tender closes. I can't see how it can be much less than 250 and the process serve its purpose.
If the SP at tender close is 240+ then you might get to sell 90% of your holding (as not many will bother) but by the time you add fees and duties you won't make much if anything buying back. But if it is 245 then, as an RI, why bother with the tender? You could just take 245 and not have to wait for the money or have a partial take up.
Alternatively, if the SP is only 220 then you'll probably get to sell only 20% of your (tendered) holding anyway as everyone will think it is easy money, but...
I think with the significant reduction in liquidity once 14% has been removed from the market, that one way or another the SP will be 245+ and you won't get to buy back for any less than you sold for. The question you need to ask yourself is are you happy to walk away with 250, which is what they want you to do.
Questions, question...
Would sell at2.50 and buy on drop ?
She will become the CEO of Seaport which will be integral to the valuation of Puretech and given her holding in Puretech is nearly 5%, she has incentive to deliver. I'd imagine that Zohar is privy to the levels of interest in Seaport and having seen the meteoric rise of Karuna, she wants to be the lead face of the company rather than essentially the lead of a biotech portfolio in Puretech.
We have $600 million in cash with $100 million payout, further payments due at the end of the year from Karuna and now a share in Seaport worth $150 million. That's before adding in value to LYT-100, Vedanta and Gallop where I would expect a similar route to Seaport.
Give Seaport 12-18 months and I think they will list on the NASDAQ. Valuation will only increase for Puretech on it from here.
Serial entrepreneur shafts long term investors. End of.Take the 2 50 and run
Daphne moved on to Seaport - Major investors getting peeved with lack of shareholder value?
Good to see some action anyway.
Results to come very soon, closely followed by the launch of the tender offer. I've no idea what the strategy should be for that now with the SP languishing at 215.
Clearly investors believe in the team behind Karuna and have confidence that success can be repeated. $100 million raised leaving Puretech with 61.5% that values our stake $160 million. As if the valuation of Puretech didn’t get crazier!!
Frustrating to be lingering at £2.15! Makes you wonder when the value will be fully realised by the markets.
can you believe this bunch of crooks running the markets ??
$29.70 finish in the states £2.14 open here
daylight robbery
they are doing the same ****e with rio tinto
unbelievable liberty’s being taken
gla we all need it on this market
Sorry, not AGM. The tender offer will be launched after publication of the Company's Full Year Results at some point during in April, so could be any time in the next few weeks.
There really is no point having a tender offer of £2.50 if the share price is north of £2.35 in my opinion.
I know it doesn't track consistently but the share price in the US is currently exactly $30 near to close on Monday.
That's the equivalent of approx £2.39 in the UK.
I can see it being very close to £2.50 by the AGM and the proposed tender sum being pointless. They need to raise it to £2.75/3.00 as I said in my last post or switch to a special dividend.
....to predict future from what this co wants to disclose at this point. So I am taking a somewhat positive view.
Puretech have many other sponsored cos aiming at new drugs and therapies. Staying means you are joining the big boys from Invesco in supporting at least the next successful discovery, Taking some money off the table by tendering may be sensible depending on your risk profile and what you would do with the cash you receive. It is very unlikely that we will be told of any progress on another sponsored company before the tender offer because it would upset the tender offer viability. I am going to treat it purely like a dividend by tendering a modest amount and expecting it to be trimmed. Content to hold the remainder.
It really wouldn't surprise me if they revised it up to 275 or even 300 come the formal announcement in April, particularly if the share price has hit 250 prior.
If they do I might (might!) have to give them some credit for a master strategy of putting a higher floor under the share price rather than just screwing over RIs.
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.