Friday, September 4, 2009

Free Money!! It's just the FACT!!!!!

Sergeant Joe Friday was out touting FACT a week ago Wednesday on this blog:

If you want to speculate on the non royalty collectiong operations of PDLI, the play is Facet Biotech (FACT 10.76) which was spun off in December of last year. When you had the spin-off, some of the dumb institutions were forced to dump the stock. Here is Facet's latest 10-Q. They had $363 million of cash, and another $100 million in property and equipment, and with 24 million shares outstanding, the market cap of the company is comfortably below the cash on its books--which gives you $14 cash, and a $17 book.

What I couldn't believe is that some of these institutions were even dumber. And they sold this number down to 8 and change. Maybe some hedge funds want the tape to look like I didn't do any detective work. But doesn't Joe Friday always get his man?

Oh wait. Today is Friday--and it's a takeover!

By Biogen. At $14.50 a share!

Who did the detective work? The idiots selling, or the guy touting it????

OK--Here's the 30 second story. Biogen needs to make a royalty payment of $30 million to FACT in 2010 H1. So Biogen is just offering the amount of cash that the company currently has, and saving themselves $30 million.

Which means they'll probably up their bid.

But now it's up to you.

It's your call.

I just gave you the story before it happened!

After doing a little detective work, and using Joe Friday to tout it.

After all, I had the facts on my side!!!

As advertised!!!!!!!!


Anonymous said...

chalk up another winner Mr. Manna, good call.

The guy who's been asking daily about FACT is going to be a happy camper.

you going to open up a fund with all the success you've had?

A few of my clients would be happy if you did. haha


Palmoni said...

Hey thanks!!!

Yeh, I'm glad that he hit with it.


Anonymous said...

You must be an insider!

Anonymous said...

Hi P, soory that I've been that annoying pest always asking about FACT...did my hw after your tout and didn't understand the hard drop.

I appreciate your blog and all your advice. Keep it up!

When do you plan to sell your FACT?

Palmoni said...

Sorry folks--No insider here. The rewards come only from hard work.

Something Wall Street is afraid of!

Anonymous said...

Mr Manna does it again ! I have accumulated a few of your picks C ,Bac,Fact .But I must after you picked Fact it fell in my lap I did my DD and it looked too good to be true .I thought I was missing something when it tanked went against my normal trading pattern and averaged down (something I loathe to do ) but BAM ! nice call P

palmoni said...

Alright!! We took some more money out of Wall Street's hide!!!

Now the WSJ has a story that this price isn't high enough:
Notably, Biogen's offer is close to the amount of cash that Facet holds on its balance sheet, which may make the company hesitate to agree such a deal.
Why didn't they tell us this when the stock was 9??

hahah!! That's Wall Street for you. Always after the fact!!

Anonymous said...

Outstanding job!!

Now we need some of that magic in MGOL, haha!!

Palmoni said...

You weren't annoying--don't say that--It's money--and that's how Wall Street works--they test your conviction, even though the facts say otherwise.

I'm glad you made some money.

We'll see where it opens. Price dictates the sell, just as price dictates the buy!

Palmoni said...

I took mine off the table at $15.46--I wasn't quick enough when it was higer.

I think the deal gets done north of $17 but I need to keep the money moving, and I'll leave the rest for the arbs.

Anonymous said...

P thanks for your help. I was on a plane from iah-dfw-back to sfo when they allowed trading again. I guess i'll hold until next week and see what happens. like you i'd like to use it else where if we can get $3 vs waiting to get another $2.

let us know what else you see that is a hit.

i assume MGOL is a long term bet in the piece that you first put out a month or so ago.

Palmoni said...

I like MGOL because I think it's 10 bagger. They got rid of their small accountant firm, and are interviewing the majors--thus the audit. You need a major firm, if you have big plans.

I have some geological work that I'm going to post on MGOL, but I'm having a college football weekend, and I'm driving 9 hours to one of the games with one of my trader friends, so I'll post it after Tuesday when I get back. (Sat and Monday night games) It's at my home office, and I don't have it scanned, and I'm away from their.

I sold FACT today, but I didn't feel good selling it at the price I did. I think it's still undervalued, but that stuff happens. I bought some more APWR today with some of it, and looking for another home.

But FACT was really fun, because it was so manipulated down! I felt it personally, as it seemed that some of these folks just wanted to drive the name down, because I touted it--since it was a thin stock--they can do that.

SO it was so rewarding to see "them" getting stung!

Here's another weird story about FACT--one that I can talk about. The other day, I noticed that Biogen had read my story on FACT an inordinate number of times.

And then they come in with a bid.

Pretty funny!

Anonymous said...

How did you know that biogen was reading your blog?

Palmoni said...

When corporations read it, the name of the company shows up on Google analytics

Anonymous said...

P, Awesome work with FACT. Just wish I had read your post more intently when you posted it. At least, there were some other who made money from your post :) Why don't you put up a donate button or an amazon wishlist link on your site for people who profit from your awesome advice ???
Need to do my DD on all your recommendations from hereon. Peace!!!

palmoni said...

That's an idea! I'll use that!