Hey punk, how ya doing? This is utterly silly. LU has about as much chance of missing earnings estimates as I do of winning the lottery (maybe I should be buying tickets?). I do see an ASND buyout as being possibly dilutive, though, and given the 25-30% premium built into ASND's price, there is the distinct possibility that LU will overpay, as we already know that an ERICY offer of $55 or so was rejected (the rumor, though, was that ASND preferred an LU buyout at $50, which is still high, but at least not as high or higher than the ERICY offer). But I agree that given the uncertainty surrounding earnings and acquisitions, the market will no doubt take a premium out of LU right now; my guess is it will trade between $70-$75 until all that clears up, and hopefully the ASND acquisition won't send it too much lower than that (unlike NT with BAY, LU is already down 30%+, so a lot of this is probably already factored in). Now go back to your Kahuna and bubble threads, tippet. ;-)
Paul |
