I do not know whether the market has bottomed, but CEGE looks like a no brainer at these levels.
The stock is trading around $14, with $23 per share in cash and around $5 per share in ABGX stock (with ABGX at $ 19 3/4) and no debt. At $28 a share, the value of the cash and ABGX stock, you would be getting all of their research and facilities for free.
Furthermore, CEGE has a great track record. . Several years ago, CEGE launched Abegenix, one of the most succesful biotech stocks in recent years. Recently, CEGE launched a majority owned company called Ceregene, Inc., focused on the development of gene therapies for the central nervous system (CNS), such as Alzheimer's disease and Parkinson's disease If Ceregene is one tenth as successful as ABGX, CEGE will make us a lot of money.
You can buy this successful company for %60 of its cash value or %50 percent of the value of its cash and ABGX stock combined. It sounds like a no brainer to me. |
