Cistron Biotechnology(CIST)$.30 Message Board

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Biotech / Medical : Cistron Biotechnology(CIST)$.30

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To: scaram(o)uche who wrote (170)	11/20/1996 4:34:00 PM
From: Vadim D. Marchenko	of 2742

Buying CIST as a "Cash Cow" ? I just did some quick and dirty calculations, making the following assumptions which intended to make conservative : 1. CIST is getting $12m as their share of settlement over the next 4 years, PV @ 7% = $11.22m 2. Immunex settled for 3 x what the patents are worth ( in other words assuming the patents are worth $7m ). 3. Stuff compensation =5 people x 80 hrs/week x 52 weeks @ $200/hr = 4.16m +$.84m for insignificant other = $5m. 4. Taxes = .35 x ( 11.22 + 7 - 5 ) = $4.62m 5. Adding up the above = $8.6m or roughly $.31 a share. PLUS you get the rest of the company for free, including all other patents AND the name of the company that owns these patents, the very one that forced Immunex to settle out of court. IMHO it is worth some extra. Buying CIST @ $.30 a share looks like a good deal to me even if you totally discount the abilities of the management ( was quoted as being "brilliant" before) and turn around and sell off the pieces. The bottom line is I do not see how it could be valued below $.3. Any thoughts ?

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