Anavex Life Sciences Corp (AVXL)

[raja48185]

Buffet also invests in companies that have value (in parts) and not run properly. He becomes active investor and helps them turn around either by changing things or divesting useless parts. So, not sure where Biogen would fit though. Also, if he wants to invest in Anavex, he can do directly...doesn't have to come through Biogen and pay for the extra layer of Biogen. So, I don't but the theory of Buffet-Biogen-Anavex. Having said that Biogen or any other bio pharma could make a play for Anavex (and most likely will do so considering Anavex's potential) irrespective Buffet or any other active investment groups.

Buffet's Berkshire Hathaway has got so much cash on hand (close to 110 to 120 billion dollars) that his investment in Biogen is just another transaction. Given his reputation/stature and that he has big guns invested in his company's shares, he would not be keen on investing in AVXL at this stage, just because it is cheap.(he is answerable to those who invested in his company's shares - imagine him telling the flock that they have thrown the rule book out of the window and gone ahead to invest in stocks with no revenue/earnings, no dividend, MC - a couple of hundred million etc.). When the time is right (he can afford to wait) he can be a majority shareholder before the market wakes up to that news.