Delcath Systems Inc (DCTH)

[Tekterra]

Add the buyout rumor it will fly lol. But boy am I glad to be holding shares and getting my average low.

I know a lot of people are very skeptical about Buyout or partnership. But, don't count that out however unlikely you might think.

We can't see the future but we certainly can predict it to some degree of accuracy based on current events.

First, we knew the company is out of cash without new shares to offer for the remaining convertible. As the result some 13 million funding is locked and no longer available. Ok, so the company is in desperate need for funding.

Secondly, looking at the medical results from earlier trials and EU success, the treatment was extending over all survival by a significant amount compare to other chemo therapies out there whether it's Doxorubicin the main stay for the last few decades, or Topotecan, none of them extends OS more than average of 8 months to 1 and 1/2 years at most 16 months to 19 months in most cases. Ok, so a treatment that can get you even just few more months or another year of life is a very big deal. Plus if it stops progression or reduce tumor may allow for surgical removal.

So what we're looking at here is a company in very bad state of finance and a valuable cancer treatment. That combination is a buyout target.

Now, the problem is all of this is controlled by the board of directors and company management. Obviously, they own little of company shares so it is least of their interest to sell the company. Because, they would be out of jobs. But, when they are out of options, a sell would be the last effort to exit versus filing BK protection.

15 million debt is nothing in terms of a valuable cancer treatment. It has the potential to be worth billions. Even a low balled offer or a rip off offer if you want to call it that, is probably some where north in the hundred millions.

Delcath management would be wise to get a partnership in case they did't realize, they are being forced to sell the company with a no Vote.