Replies to post #68501 on Biotech Values

[DewDiligence]

>Since, ...BBM is willing to undertake a tender offer at a cash price of U.S. $0.60 per share... I guess the BBMO stock is worth around $0.30 a share.<

Maybe. At this point, the tender offer at $0.60 is merely a threat; it remains to be seen if BBMO is willing to carry it out.

If you take the tender-offer threat at face value, the implied value of BBMO shares is (.60-.50)/.375=0.27.

[DewDiligence]

YMI is now 0.29, only two cents above yesterday’s close. YMI's PR rejecting the buyout offer:

http://biz.yahoo.com/cnw/081113/ym_bio_bbm_response.html

Obviously, the market considers BBMO’s threat to launch a tender offer at .60/sh to be utter BS.