CIST was up 23% on the bid today. Of course, if you bought it yesterday at 31 cents asked, and sold it today at 32 cents bid, you are not thrilled.
NEVERTHELESS, they accomplished something. 1) They have Dr. Grausz (founder, who owes them money) substantially out of the stock, and have disposed 25% potentially hostile voting power. 2) They made a _good investment_, paying $.2274 for stock that is selling for $.32. 3) They increased the cash value per share by 8 cents (nearly 25% over yesterday's closing bid).
Adjusting the balance sheet (from the 10-K of Dec 31 98) for today's action, I calculate a cash value per share of 58 cents. In addition, I expect the company to sell at a premium to cash due to the Pasteur-Merrieux-Connaught deal, TECH royalty stream, and other patent rights. Accordingly, I now believe the company will be sold in the 75 cent to a dollar range. This would make me a happy, but homesick, camper. |
