Halozyme Therapeutics Inc (HALO)

[Fred Kadiddlehopper]

To compete agains the bond market offering higher rates HALO's pps has to come down. That's part of what we're seeing here, besides the fallout from the refi/convertible mess. My estimates were based on a theoretical 2% return in a quasi dividend brain experiment. Formerly, this justified a 50 multiple times eps.

Now the math has changed and not for the better. What is the correct new multiple?

A 2.5% "return" or "dividend" would chop that multiple right down to 40. It gets worse from there.

End of year projections are for ~$1.50 eps.
So, 40 X $1.5 = $60 by end of year instead of my earlier, and sadly naive, estimate of ~$70-75.

Can you say: perfect shitstorm"?