Trucept, Inc. (TREP)

[Willie1a]

Is TREP a take-over target…an essay:

The short answer is YES ! It’s said that the only reason to run an OTC company is to be able to use the markets to raise capital. They have never done so, nor do they show any signs of doing so. I can’t find a form 10 or a 1A or any other registration filed to execute a public or private offering. So we can rule that benefit out. The last several Qs have clearly shown that they do not need to raise capital with shares to continue to operate.

Running an OTC company is a hassle. Just to stay current with the SEC filings requires time and resources and detracts from the focus required to run the business. Shedding that burden would certainly be welcome.

What’s it worth: It currently has a tangible value of about $17M. That is about .33/share before adding for additions to the balance sheet from earnings in Q3. The debt is minimal at about $1.5M and doesn’t come due until 2023. (this is all in the filings BTW). To pay .40/share for Trucept Inc would not be to buy it. It would be to steal it!

Who would want it: Any equity firm or holding company that wanted to enhance their portfolio through the addition of a valuable and profitable company. Or any competitor in their peer group who wanted to expand their market share.

Who would benefit:
1. The acquiring company as mentioned above
2. TREP by shedding the burden of maintain an OTC company
3. The CEO and chairman who would each walk away with $2M using my .40/share example.

The last reason why I think this theory is viable is because management does essentially nothing to enhance visibility which would clearly drive the share price upward. Even the OTCQB certification seems to be dragging out.

This essay is just an extrapolation of my research and contains comments that may be purely coincidental. But it sure looks like TREP is low hanging fruit as a take-over target. You should always do your own research before investing.

I always welcome your well educated comments.

Good luck to all of us,
Willie