Quote, "If Astellas Pharmaceutical successfully acquires OCATA they would own all of OCATA's technology, patents, intellectual property, etc.
So, wouldn't taking your $8.50 per share after the acquisition and buying Astellas stock be prudent if OCATA really has a valid treatment that shows improvement for AMD/SMD?
Or am I missing something here?"
Well, depends on what Astellas has planned. Of course they (Astellas) now owns it all- they'e buying out the entire company known as OCATA. Everything that is OCATA is now there's post this deal- it's like taking it private essentially. OCAT as a public traded firm in it's current form no longer exists.
Problem is, the way I see it, is Astellas is a mega company for one and I don't know jack about their historical stock/biz/company historical performance and 2) They're a foreign company, so you'd only be buying some form of ADR foreign shares here on our markets- which in my experience, typically ain't the hottest deal usually. Unless of course you can find a way to buy um on a Japanese stock market exchange somehow- which I'd totally know nothing about.
But beyond that- who knows at this point what Astellas even wants to do with this company/tech. They could shelve it/drawer it for all one knows. They could dabble in it and not do much with it. Or maybe they're gonna pour the coals to the fire and totally promote it- who knows? I've seen numerous companies bought-out and driven into the ground in short order. I've been involved directly in parent companies I worked for in which we bought supposedly "hot technology", bought out some firm- and I literally was the poor guy (part of a group usually) sent to shut it all down and piece it out only a year or two later when it didn't amount to a hill of beans and the parent company cut it all loose for pennies on the dollar they'd just pissed away on it. Try showing up at some firm as the hatchet team, there to take what the parent company "wants" and then pink slip the rest of the place and pack it all up and shut it down- it's like walking into a enemy camp with a big ole target painted on your front and back. Not a fun "project" unless one digs being the hatchet man/woman.
Seen everything and every variation of those scenarios- from wipe outs, to great success from buy-outs. They're a crap shoot usually.
Just look at the history of a major "buy out" type companies (firms known for large growth via the buy-out process, versus "organic" internal growth) like a Pfizer or GE or Yahoo or Google and look at how much of what they bought, later amounted to nothing and was either shuttered or dumped and sold off at a huge loss only a few years later. Big, cash flush, cash rich (or stock rich) companies can blow a lot of coin on bad deals- they're notorious for it. They only need one or two big "hits" to make up for all their other bad deals. That's my experience.
I'd say buying this Astellas to get a piece of "OCAT" would be a huge crap shoot IMO. Just too many variables. I'd think taking the money freed up by getting out of OCATA and buying into another solid player in the field or in bio-tech if that's one's game, a solid up n comer on a U.S. exchange would be a much better play/gamble if one wants to risk a few bucks.
That's my few bucks worth, for whatever it's worth.
Posts contain only my amateur opinions, personal views and thoughts. I discuss stocks as a hobby only. Always do one's own due diligence before investing.
