SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Biotech Derivatives
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (386)9/15/1999 2:06:00 PM
From: RWReeves  Read Replies (2) of 555
 

<You own Genzymes cancer franchise as far as I know.... if they produce a blockbuster, you own it.... it's just that Genz geneal owns a big chunk too.>

Thanks. Hmmm...yeah, the franchise part I understand, but aren't we all minority shareholders- we can't ever sell the "company" (GZMO, for example) in a tender (there will never be a tender) without Genzyme spinning it off or getting bought out itself? And we can't get at the doggone cash flows because it won't come out a as a dividend. The Retained Earnings are only of value if you can somehow get at them- At least in my experience, companies that retain 'em don't always do so for the best interest of the shareholders and that's when the shareholders have to be able to vote and say , "Thanks, No" in a variety of ways.

What effect does that have on value? Well, I would suggest that BioRad may be the world's oldest tracking stock and has been claimed to trade at about 1/2 to 2/3 of real value simply because of the lack of voting rights- even if you buy all of it you can't own or control the company.

This isn't idle theory I'm asking- it matters a heck of a lot how you value these little GZ's running around.

I've never gotten a really good analysis of that- may need to GAH! go into the econ. journals and see what the eggheads say. Where's the darn CFO when you need him?

RWR

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News