Myrexis, Inc. (MYRX)

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http://www.smallcapnetwork.com/Takeover-Candidates-due-to-Unrealized-Asset-Values-EK-RAD-MYRX/s/via/3420/article/view/p/mid/1/id/159/

Takeover Candidates due to Unrealized Asset Values (EK, RAD, MYRX)
High Asset Values and low share prices make these Buyout Targets
By Jonathan Yates
Published: September 1, 2011 6:33:45 AM PDT
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StockHQ:

RAD
$1.02 -$0.03 -2.86%
EK
$3.24 +$0.07 +2.21%
MYRX
$2.77 +$0.07 +2.59%


Small cap companies such as Eastman Kodak (NYSE: EK), Rite Aid Corp. (NYSE: RAD) and Myriad Pharmaceuticals (NASDAQ: MYRX) have asset values not reflected in the share price. This makes each a takeover candidate for an acquirer looking to "flip and strip."

Eastman Kodak, as an example, has very valuable patents. "They do have values embedded in patents and other technologies. Someone is going to buy the company and tear it apart," predicted Keith Wirtz, Chief Investment Officer, Fifth Third Avenue Asset Management, about Eastman Kodak. While Eastman Kodak is estimated to have about $3 billion value in patents, the market capitalization for the company is only $855 million. The unrealized value of Eastman Kodak has been detailed in previous articles on www.smallcapnetwork.com.

Myriad Pharmaceuticals, selling around $2.70 a share, has $4.19 in cash per share and no debt. With the cash on hand, the takeover pays for itself with about $1.50 in cash per share remaining. The book value for Myriad Pharmaceuiticals is $4.83 a share. Insiders have also been buying at Myriad Pharmaceuiticals, which is very bullish as they know the company as its prospects best. The short float is only 0.76%, which is very low and other bullish sign. In addition, as reviewed in a recent article on www.smallcapnetwork.com, the pharmaceutical industry is very hot for mergers and acquisitions now.

Rite Aid offers value in its product mix and store locations. As almost 70% of Rite Aids sales are in presecription drugs, it makes an attractive takeover candidate for a company looking to establish its presence in every segment of the pharmaceutical industry. Retail chains, due to the store locations and tax breaks, are very attractive takeover targets. This was the subject of a recent article on www.smallcapnetwork.com.

While Rite Aid, Eastman Kodak, and Myriad Pharmaceuticals are all attractive, the climate for acqusitions is even more compelling. Interest rates are at lows and will stay that way, making takeovers easy to finance. Companies have strong balance sheets, make mergers and acquistions more likely. As a result, 2011 looks to be a record years for mergers and acqusitions.