BB's Stock Haven

[mcmike]

BXTRR: Contingent Payment Rights Without Intrinsic Value

SCAM? ALERT

Baxter's S/4 from 4/6/98 outlines the issuance of contingent payment rights as a kicker to Somatogen shareholders when Baxter bought them out. If Baxter were to commercialize any of SMTG's intellectual property, then rights holders could receive as much as $2/right.

I spoke today with the US Bank trust representative, and with Clare Sullivan from Investor Relations at Baxter:

No payment has ever been made to rights holders.
Baxter has no plans to commercialize the Somatogen technology.
Though the rights do not expire until March 2008, they have no value

To reiterate....
IMO, a little club bought up a bunch of the rights on 4/5, and created a "story" which played out Friday. There are 23.979 million CPRs. I do not think there is any "float" to speak of.

The rights never traded in the volume they have the past week, last 2 days, (or 2 weeks if you count 4/5).

Just amazing what happened Friday. Unreal.

Anyone making positive comments on BXTRR is probably hoping to stir up a buyer for their long position.
Anyone holding BXTRR should take their gains or limit their losses by exiting as gracefully as possible.

A nice example (if you are not a bagholder) that you don't have to have a product to move paper...just a story. I wonder if we'll ever know which traders concocted this play, or how much money they were able to take from the lemmings who followeing the price appreciation and volume spikes, went in for a purchase.

I will be curious just how long it takes for BXTRR to be trading less than a penny again. Could be weeks!!! Maybe the buyer's club will do it again when the price gets cheap enough!