I needed a time machine to go back in time for about a year 2013...
"Buyout - Fearless Bob Antonelli went out on a limb predicting a possible $30 buyout price for sometime in the future, maybe in a couple of years. Bold statement, for sure, but one not without grounding and substance. In the criticism that followed he correctly pointed out that buyouts are for future earnings based upon the science, the innovations, the potential for a game changer, and most importantly for Kraig, possible replacement (or enhancement leading to possible replacement) for an already existing product, eg - Kevlar.
Dupont (or similar corporate entity) knows SSP fibers will address the same market as Kevlar has for fifty(50) years. And then throw in fashion and apparel, medical uses, and electronics and you easily have probably double that amount. At $10/share, the price is $6 billion. Throw out 200 million of Kim’s shares, give him a small share of profits, bump the price up to $20, and you have an $8 billion price tag. Kim walks away with $2 billion. In the world of multi-billion, international mega-corporations, $8 billion is not a large investment, especially when they know it will be a moneymaker right out of the gate, proven and patented technology, high entry barrier to competitors and the market is limited only by imagination.
Money is not a problem for the likes of Dupont. Who knows how much these guys have stashed overseas. I bet Joe Cunning has a pretty good idea. How many times have you heard of a company buying another only to write it off b/c it didn’t pan out. Lots, that’s right. Kraig is a whole ‘nother bag of tricks. Can potentially replace Kevlar plus be used in a host of other applications, some not even thought of. And the longer they wait, the higher the price. Signed contracts, supply chain set up, customers, large markets, patented - how much is that worth? Kraig is executing, they are waiting, the meter is running. Priceless."
