Cytodyn Inc (CYDY)

[BlackDoggie]

Hey d0lphint0m (but not just you!),

I think the folks with the “unrealistically low” expectations are more just experiencing a disconnect between the current SP/action and the modeled values. How do you get from A to B? Our capital structure is currently hamstringing the benefit of any positive news - which we’ve had a lot of lately! And while everyone is aware that the company “should” be valued based on expectations of future cash flows, when was the last time a company got bought out for an overnight premium of ~3,000%? That would roughly be the case if CYDY were bought tomorrow for $15, fully diluted. Is there precedent for this sort of buyout? Plus, how do multiple bidders work in a scenario where any negotiations are roped off by NDA’s?

I’d be interested to hear about any cases where severely undervalued companies are bought out very quickly for a fair price. Not saying it doesn’t happen, I just don’t know if any and haven’t done the research. The more common case seems to be that SP appreciates significantly and naturally, then BO occurs at more like a 100% premium.

So again, how do we get from a $0.50 SP to a multi-billion dollar buyout when nothing that comes out moves the needle? That’s the disconnect, and why a lot of people who understand the math perfectly well are tempering expectations for a BO at high valuation. Any case studies to connect these dots would likely be appreciated by many.

Again, not responding specifically to you, more just the general conversation. You just had a perfect post to reply to!

And don’t worry folks, I’m still long here and plenty optimistic for the long term.