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fbg0316

03/30/18 8:55 AM

#61668 RE: jap1511 #61667

If there is a buyout coming, I agree, that could explain the short interest coming down significantly. But short interest naturally has come down given how much shareholder value has been eroded, hence more profit taking by shorts. My buyout estimate of $500 million/$10 a share is what I think is the minimum the company would/should sell for. Hopefully, it's higher. An interesting comparison was CPXX' sale in 2016 for $1.5 billion/$30. That company has around the same shares outstanding as ADXS and similarly had a low share price before the sale and ramped up signficantly going into the sale. The below paragraph says CPXX' 200-Day moving average before the $30 sale was $4.94. That's encouraging. The extend ADXS can negotiate a sale closer to the $1 billion level/$20 share price, the better.


"On Tuesday morning before the market opened, Jazz Pharmaceuticals announced that they will buy Celator Pharmaceuticals for roughly $1.5 billion or $30.25 per share after shares closed on Friday at $17.53, a 73% jump in value. This should add excellent growth value to JAZZ’s bottom-line as VYXEOS, an Acute Myeloid Leukemia (AML) treatment, will be added to their portfolio which is anticipated to have the regulatory submission by end of third quarter 2016. Before this buyout news, CPXX had an average price target of $21.20.

Looking at the chart you will see that shares have been on the move since gapping up back in March and have trended higher into this news. Shares are looking to gap up above the $30 mark and will probably stick around these prices as buyouts have a defined price in place but if anything happens to the deal we could see a lot of price movement. Shares are well above their 200-day moving average currently sitting at $4.94 and their 50-day moving average at $13.98. The stock has made most of the move in the premarket so don’t expect much after the bell rings."