Chem RX Corp.(fka CHRXQ)

[Yukii]

Got this sent to me by Spartan stock pics!!!!




Friday, November 5, 2010PharMercia [NYSE: PMC] Completes Acquisition of Chem Rx [OTC: CHRXQ]




With shares of PharMercia up nearly 35% since the buy out news came out, about the buy out of Chem RX there has got to be a pretty good story ready to unfold her. What I found interesting where the remarks buy the PharMercia CEO about the acquistion. See related article below.

But once again PMC and Chem RX fail to mention the exact details pf the buy out offer, and what happens to the common share holders. I found two things very bullish about this, in recent court documents filed with the Federal Deleware Bankruptcy court: the CEO and his son and their family trust own 52% of the total outstanding shares, the A/S and O/S are the same and around 13.7M shares, this puts the float at less than 6M give a take a few for error here.

The ultra low float here explains the low volume 5K buys sending this stock up over 180%. The other fact that the CEO for PMC Gregory S. Weishar had some very interesting comments, PharMerica Corporation's Chief Executive Officer, said, "We are pleased with the acquisition of Chem Rx, which drives business scale and allows us to expand into the large New York and New Jersey markets. We believe this acquisition will create long-term shareholder value. Chem Rx brings over four decades of experience in the New York marketplace. Combined with PharMerica's existing scale and financial stability, Chem Rx is well positioned to continue to provide excellent service to our customers. Chem Rx will operate as a separate subsidiary, and we look forward to partnering with Jerry Silva.

But again the fail to mention the stock of CHRXQ. I beleave the details will be released slowly and near term. And with Jerry Silva owning 52% of the shares I believe the old man makes out lika a bandit.

To me it seems that PMC is gonna re-wrap up some of the debt, make equity lines of credit available, and let the company operate as normal but with a very nicely cleaned up bottom line. And top the deal off with some discounted shares of CHRXQ, this is a SURE WIN WIN deal for CHRXQ PMC share holders.

This is turning into my longest hold this year, but will be my biggest gainer in the end, I'm talking about a 7000-10,00 percent gainer.

Let's reset the clock back and but the share price for Chem RX at $5.00 a share and the then add in a P/E of say 9ish, thats about the P/E for PMC, but then whats the Share price?

I believe this could turn out to be one of the most thought out, well excuted plan by some XTREME CEO'S!!

Winner Winner here!
Posted by Spartan Stocks 300 at 9:47 AM