I just had the strangest dream... I felt as though an entire weekend transpired and that it was now October. But here we are on Thursday, September 28, reading posts 59673 and 59689 again...
Oh, wait... it IS October and this is just a disturbing case of deja vu? I guess I'll try a different explanation. Ballpark numbers as always, for this hypo-pathetical situation.
Titan is squat next to the monster players right now. Say for example J&J bought Titan. They have a market cap of almost $350B. ISRG is barely over 1% of that. Let's just say J&J bought Titan and handed Titan shareholders J&J stock to buy us out. One J&J share is $130; Titan is around four for a buck. We are looking at an effective 500 to 1 reverse split for our current investment. One share of J&J for every 500 shares of Titan right now. People are bitching about a 30 to one, so why would you want a 500 to 1 RS?
Okay, so now my 350K shares of Titan are 700 shares of J&J. Let's say SPORT rules the market and quickly grows to ISRG's size. Value around $3.5B. We're stuck with J&J stock. All this time and money with Titan, and in 5 years we get a whopping 1% bump from our investment in robotic surgery, because that is what $3.5B is to J&J. I'm not in this for a 1% bump over 5 years. None of us are. Okay, you say a 1:1 share buyout is improbable... is 2 for 1 dollar value a better buyout scenario? It just means we wait around 5 years for a 2% return on our investment in robotic surgery.
Who suffers by getting a partner? Me. And Titan management. And everyone else here on this message board who is in it to win it. We are here for the big score, not to be part of something that adds one percent to J&J's bottom line. Or for Medtronic with their $100B+ market cap, it's 3%. Big deal. Not why I'm here. I don't want them to buy us out now either. I remember when THE PRIOR MANAGEMENT TEAM ran out of money and stopped "production" (actually, development; we still are not in "production").
We are churning 3M to 5M shares per day at nearly triple the share price was had around the time of the last raise. I think it is a safe bet that they can now raise enough funding to keep us rolling. If it means adding outstanding share count (most likely) then so be it. I have a stock that could get me 100X my investment in a few years. I'd rather give up 15 or 20% of that growth (dilution) for funding now instead of giving up 99.9% of that growth because some monster corporation swallows us while we are so cheap. Sure, J&J or Medtronic could easily buy us and add a couple points to their bottom line; that's what those conglomerates do over and over. But that is not why any of us are here. Except apparently for you.
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OR Nurse
Titan has been having investor conferences for a while now. Why would they not agree to a partner when they are starving for cash? Again, they do not care about their shareholders. Dilution is easier. The shareholders suffer. The bottom line is the product has to come to market. I do not understand why Titan would not have a huge sigh of relief, get a partner, share in the wealth with this partner, and advertise the partnership everywhere they can! Shareholders would go crazy, the pps would skyrocket and ISRG and other developing robotic companies would go "Oh no!" Who suffers by getting a partner? Who suffers knowing we have enough capital to get us to FDA approval? Unless you agree that there is more financial incentive with board members NOT to partner. Which again means more dilution. Not being a Debbie Downer. Just being a realist. Wouldn't it be nice if a partnership was announced, we had enough money and we would not have to comment daily on how much working capital. Remember when we had to stop production because we ran out of money?
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