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Re: knoxlube post# 6866

Wednesday, 01/23/2019 11:54:01 AM

Wednesday, January 23, 2019 11:54:01 AM

Post# of 7747
My concern with ASAP is that while most focus on the S part (Soon), I focus in the P part (possible). I am in business and negotiate deals a lot....FYI, no, I am not an expert and I am not saying I am smart or anything and I have never negotiated in the biotech world....but this deal they are negotiating has to be hard. Assuming they are looking for a buyout, biotech tends to be sold in the 50 - 350% premium range. Yes, there are outliers, but 400% premiums are hard to come by. Small biotechs tend to have a product worth buying with catalysts that drive the MC up some before a BO and small biotechs tend to see the higher end of the premium based on the catalyst driven higher than average PPS. I do think CYTR has the product, just not sure I see any catalysts to drive the MC to a level that allows for a proper BO valuation.
I assume SK and other insiders don't want all their past options to be worthless and most are $14+, and shareholders also want to see a BO in the $14+ range. Convincing BP to buy a company at that kind of premium is really, really hard. The deal with Soon for aldox was at a 92% premium for the shares he purchased. It does seem based on market action that everyone is in waiting mode. If they can pull this off, it would be amazing.
Side note, I did take a position. The above are just my opinions and I am very much so hoping for the best!
Good luck to all shareholders!!!
Side note: Put me down for March 7, 2019 for my "ASAP" Date!