Myrexis, Inc. (MYRX)

[aquaspin]

Nice article. MYRX actually has $147 million in NOL's not $100 million. Won't be long till some company finds this gem! I could use $1 per share!

[SmallCapTrader2]

[SmallCapTrader2]

An interesting comparison between KKR's investment in WMIH shell and investing in Myrexis:
http://ipo-edge.com/2019/01/31/going-public-with-a-tax-twist-can-investors-take-a-page-from-kkrs-playbook/

[SmallCapTrader2]

An interesting comparison between KKR's investment in WMIH shell and investing in Myrexis:
Going Public with a Tax Twist: Can Investors Take a Page from KKR’s Playbook?

[SmallCapTrader2]

An interesting comparison between KKR's investment in WMIH shell and investing in Myrexis:
http://ipo-edge.com/2019/01/31/going-public-with-a-tax-twist-can-investors-take-a-page-from-kkrs-playbook/

[aquaspin]

The full $150 million in NOL's can be utilized since there hasn't been a "change in ownership". There are no penalties since the plan is for MYRX to acquire assets instead of a company purchasing the MYRX shell (like a typical RM).

This is the new wording on the website:

"Myrexis, Inc., headquartered in New York, New York, is in the process of evaluating strategic alternatives, including focusing on identifying, evaluating and making financial investments in life sciences assets."

[UpTickMeA$AP]

So, $45m or 150m are able to be used? I think its %30 of total NOL can be used. Also subject to other penalties that can limit the use.

[bb money]

No, 1.1 million is the last balance sheet cash number. They have 150 million in NOLs.

[UpTickMeA$AP]

$1.1 million is the usable number for the NOL?


Yes, if he updated the site, that would be a small, but positive sign. I'm curious, having not seen this update, what did you see updated that caught your eye?

[aquaspin]

You are correct. We won't hear anything till a deal is reached. Couchman won't give out any info to individuals who contact him.
He updated the website last month so I would gather that is a good thing.
The new wording makes it sound like MYRX still has some of the $1.1 million left to invest in life sciences.

[aquaspin]

It looked like to me that Couchman's other mergers happened around the time of when the statute of limitations was up. I believe one of them was 6 years after he took over while the other one was around 3 years after he took over. I will have to research that again to double check.
No, he won't give out any financial information to individual shareholders who contact him. He says that you just have to look at previous filings.

[UpTickMeA$AP]

You will most likely not see any news until a deal has been reached. IF, a deal is reached. Anyone call Mr. C and ask him if he is still working on something here?

[SmallCapTrader2]

Thanks much for this! It makes a lot of sense. Was that rationale from your own analysis or has Couchman/the company ever mentioned that in the past? It seemed that for a while MYRX shareholders were offered financial information on the company upon request. Did anybody here ever receive those financial reports or had any luck getting further information from Couchman/others at the company? Thanks again!

[bb money]

Verrrrryyy patient! Lol

The spread and bid ask jumping on this thing are crazy!

[aquaspin]

News would be great! We will eventually see something. Just gotta be patient.

[bb money]

Running up and on increased volume. Would love to get news.

[bb money]

Getting interesting. Wonder if it is just renewed interest from article or something is in the works.

[aquaspin]

Here is a link that shows statute of limitations. You will see that MYRX headquarters in NY is 6 years. Makes sense for a company to wait the 6 years (like we pretty much just have) before utilizing MYRX shell

https://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

[aquaspin]

I think it will be a larger cap company that takes over the MYRX NOL's. There aren't many small companies that have enough profit to utilize $147 million in NOL's.

Tons of potential here. Volume before price is what they say...

Most volume last week in many years.

[aquaspin]

If you look at older posts, you will see that there was someone bidding 310,000 shares for .061 I was the one that posted it a year and a half ago when I saw it on level 2 (post# 121)

Way undervalued here IMO.

[bb money]

Noticed this was your first post on IHub. Just curious what brought you to MYRX?

Look back at some of the SA articles or posts here on value estimates. Low end would be .30 and on up from there. Most recent article had $1 valuation. It could go much higher depending upon the merging company.

[aquaspin]

I would say the value would be at least that. There was an SA article several years back about nol stocks and MYRX. It had a formula based on Couchman’s other nol deals. I will have to read it again.

[SmallCapTrader2]

Whats the consensus on fair value for this among those holding? .15-.20 cents realistic? More?

Also, interested in the point at 6 year statue of limitations. Do you have a link that confirms that? Is that for all lawsuits or just some?

[aquaspin]

I hope it wasn’t either. I think it’s a good thing that he updated the website. The new language is interesting:
“"Myrexis, Inc., headquartered in New York, New York, is in the process of evaluating strategic alternatives, including focusing on identifying, evaluating and making financial investments in life sciences assets."

The fact that MYRX still has the ability to make financial investments in life sciences assets shows that the company still has money to spend as of last month.

I just noticed that the article was published at 3:00 PM yesterday so it was out for only an hour before trading day was over.

Couchman bought his shares for 3.5 cents a share. At the time of the deal the shares were trading around .10 if I remember right.

[bb money]

Yeah, I just hope that isn’t the only reason for the recent increase.I don’t know if the website refresh makes me feel better or worse. If it means we are still looking with no prospects after five years then it could be quite a bit longer. Do you recall what average price Couchman is in at?

[aquaspin]

I like that the MYRX website was redone last month in December. There are no pending litigations which is great. And the statute of limitations will be up in a couple months to where no one can file any kind of lawsuit against the company. This is when MYRX gets utilized IMO.

[aquaspin]

That article was a good read. Just goes to show how valuable MYRX is. I would love to see $1+

[bb money]

That likely explains the jump - SA article. Completely agree with his assessment which is obviously why I am in and continue to hold.

[Paullee]

https://seekingalpha.com/article/4235700-myrexis-overlooked-asset-deliver-big-payday-deal?app=1

[bb money]

Getting interesting.

[bb money]

Looks like some pre-market volume today.

[PSDFinancier]

Still follow it from afar. Interestingly, it looks like Couchman updated the website for Myrexis a few weeks ago:

https://www.myrexis.com/.

Looks a lot cleaner than the old version of the website did (which you can find using the Wayback Machine: http://web.archive.org/web/20180701000000*/myrexis.com)

That, combined with today's massive volume, makes me wonder if something is going on behind the scenes.

[bb money]

Wow! What is going on? Not going to get my hopes up. Should have bought some down in the .008 range. Would have been much better off flipping this over the years. I still think it has tons of potential. I was just in a shell that jumped 600% on RM news and it is 1/100th as attractive as this one.

[aquaspin]

Do you still follow MYRX? Most volume today since Couchman took over several years ago! Wonder what is happening with all the buys today

[aquaspin]

MYRX Most volume in many years.

[aquaspin]

Nice to see a 200,000+ bid here. Its been a while since we have had one that size.

[bb money]

I think for preservation of the NOLs there is a cap on percentage ownership. Don’t quote me but seem to recall it is around 5% which would be around 2 million shares. He might not be able to buy more without exceeding the cap they installed.

[aquaspin]

I can't believe it either. If I were Couchman, I would be buying down here if legal to do so.

[bb money]

Selling down here is unbelievable. Something like a 290k market cap at this price.

[aquaspin]

My guess is that they won't do anything with this shell till early next year. At that time, the maximum statute of limitations will be up for anyone to be able to file any kind of lawsuit against the company. One of the other shells that couchman had was utilized 6 years and 2 months after inactivity.
If I were a large profitable company wanting to go public via this shell, I would want to make sure there are no liabilities (chances of getting sued, etc) whatsoever.

It's strange to see the selling lately. My only guess is that it could be the remaining mutual fund that owned 433,000 shares wanting to sell before end of year.

Couchman spent $250,000 to buy the 20% stake that he owns. I can't see him just letting this go. $150 million of NOL's makes MYRX extremely undervalued here imo.

[bb money]

Fair enough and I have similar thoughts. I would point to WMIH which was a similar but much larger NOL shell started same year and they just recently got a deal done. That said, they were much larger so should theoretically have been easier to get a deal done with MYRX. He has 3.5 million shares so I still say he has a vested interest to do something - not worth much at current price. I have been in and am currently in another shell with not near as much going for it (No NOLs) trading at significantly higher market caps. But I guess it all comes down to who has it and whether they will get a deal done m.

[Paullee]

He hasn't done anything in 5 years, I think that says it all

[bb money]

Edit: My 3-4 times estimate was based on an incorrect share count. So at 35 million O/S and 8 million NOL valuation would be .23 a share which is 23 times current value.

[bb money]

Okay so let’s say there is no cash left. Still undervalued shell, correct? $150 million NOL - can’t remember what that equates to in other transactions but let’s just use a 21% corporate tax rate that would be $31.5 million. Now you wouldn’t expect to get all of that but if you got only 25% in an RM then that alone is 3-4 times current price. That doesn’t account for getting a clean shell or any other items such as possibility of cash left.

Always open to other thoughts and love to hear some others opinions. So what are your thought on it Paullee?

[Paullee]

Actually, you don't have any idea about how much cash they have left. They only had a little more than a million in 2013, Since then they had to pay certain SEC and professional fees, plus fees to go dark and G & A for the last 5 years. You tell me what that totals to.

[bb money]

Please let me know if you hear anything. 500k at this price isn’t much dollar wise but it is from a outstanding shares perspective. Extremely tempting at .01 - would have to go back and run the numbers with this below cash and NOLs even at a discounted value to get a reasonable target. Why someone wants out after all this time is perplexing. It is tax loss season so that could explain but you would think if you held after the distribution you would continue holding. Hard to know though.

[aquaspin]

I had emailed the company when I saw a 500,000 sell order in at .014. I never got a reply. I'm hoping it's a single individual that wants to sell this year for a tax loss. Only a guess though. The NOL's here are definitely valuable. By the look of the volume since my email to them, I'm assuming that person has about 200,000 left to sell.
I'm going to buy some at times when I can. Just seems like a no brainer to buy here imo.

[bb money]

We are going on three years since the passage of three years from 2013 for the NOLs, correct? Just can’t figure out if they are working on something and when that might materialize. I guess I just expected it to trade sideways until that point so the selling pressure is unexpected.

[bb money]

No. Will try at some point although not sure what good it will do. Have you spoken with them lately?

I can’t believe we are looking at a penny ask! This has just been sad lately. No buying pressure when you would think with the balance sheet and NOLs this I a steal at these levels. Sure makes you wonder. I mean cash liquidation with no NOLs is over .03 by my calculations. But after 5 years maybe folks giving up? Not sure.

[aquaspin]

Nice bid support here. Did you reach out to the company?