News Focus
News Focus
icon url

gfp927z

11/28/07 1:40 PM

#14202 RE: icebrg #14201

Erik, Yes, and if outfits like R+R routinely participate in manipulating stock prices lower ahead of PIPE pricings, why wouldn't they also do it in other circumstances? The 0.30 cent target shows how vindictive they can be.
icon url

neuroinv

11/28/07 2:17 PM

#14203 RE: icebrg #14201

That's absolutely true. But I think there is another angle:

By broadcasting this highly negative appraisal, I think it's pretty clear R&R has had a marked effect upon share price, and that is how they affect the pricing of any transaction--they've reduced the 'floor.' If I were a sociopath and working at a company like R&R, I'd be trying to line up a private equity firm that had say, $75 million to put in. Buy Cortex at .75 a share (and here the options melt away since they are underwater), call it approx. $40 million with fees. With $35 million in operating capital, they could execute RD trials, a Euro ADHD trial, whatever it would take to dress Cortex up for resale for, call it $150 million. Double their money (or better) in 12 months. One can play with these figures, but the principle remains the same. R&R could broker it and also own a piece of the action.

Not that this will happen, but I believe that R&R is looking for more than just sending a message.

Ombow: I wrote that list of potential topics as a broad and time-consuming menu of possibilities. I'm not going to be able to go through them here . I've been spending way too much time posting here and getting riled up in the process, so I plan to do considerably less of both.

NeuroInvestment