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!!!
Posted by Palmoni at 11:59 AM