I propose a sale as being the best option for INSM
The current problems:
1. Slight but remote possibility of Injunction. I have done research on Judge Wilken. Wilken is the one put injunction on PS2 controller. But given the 4 tests, I believe the possibility is very very small.
2. Cash problem. I think this is actually bigger than the possiblity of injunction. Let's say INSM doesn't have to pay the 10M penalty + fees anytime soon, the 30M it has will only last them till June 2007, which means more dilution around Janary-March 2007 frame.. Best case is 1.25 by then...that means 50M shares minimum dilution.
Given all this, I do firmly believe a sale will be the best for INSM iPlex as well as us investors.
Now think about this: we don't want to be bought by TRCA. TRCA will not buy INSM because if they did, they voluntarily canibalize their company's product and will be an INSM technology company. Imagine what the top manager will feel not knowing any INSM technology and have to rely on it to survive? Also, a combined TRCA and INSM will experience a market cap shrink due to both company targetting the same market. Combined TRCA/INSM will probably be valued at 400M market cap for now, which means even if 1 TRCA share for 2 INSM is announced, the people will just short TRCA shares to $4 or less, which means that INSM people get about $2 a share.
Here is my solution:
Let's sell INSM to DNA! Since all the patents are from DNA and they are a 90Billion company, they have cash, and iPlex is promising. That way, DNA will canibalize TRCA's market. And Screw TRCA in the rear-end for not having the best technology and lawsuit hogs. DNA is probably willing to pay 300-400M for INSM giving the coming iPLEX pipeline a run for its true value.
If you own tons of INSM like I do, please group up and send the management a letter so the deal gets through Q1, 2007! iPLEX deserves 300-400M minimum if it wasn't still lawsuits.
