Immucor Banter From Gamma Yahoo! Message Board
Great job
uptick407
Sep 21 1998
4:37PM EDT
Guess they finally capitulated after seeing this stock decline and realizing that this product could not compete and this lawsuit was indefensible.
Pity they blew their chance to enhance shareholder value and get a higher price when their bargaining power was at a premium, instead grandiosity about ReAct clouded managements' judgement.
Hope you enjoy your retirement.
Money To Burn
OldandAchin
Sep 21 1998
5:09PM EDT
$25 million for a product that can't compete and an indefensible lawsuit? Evidently, you've missed quite a bit. Better look a little more closely into both. Ed Gallup did.
O & A
DryFlyFan
Sep 22 1998
10:45AM EDT
O&A,
Nice to see you getting a little snarly lately, even though we initially have different views of this deal. I can be swayed you know.
GBL is a floundering reagent company trying to introduce a newer technology (ReAct) to the market. All reports are that it just doesn't work that well. Missed antibodies in evaluations etc. Lawsuits are never a sure bet and Diamed has a far bigger war chest than BLUD. Hoping you might win a lawsuit is a gamble.
GBL is selling because they just don't have a future. BLUD has been fixated on GBL for so long that they may have blinkers on.
I am probably more in agreement with Uptick at this point because this company was sold and not bought. There is a difference that speaks to the true potential upside.
Based on the DBL deal Immucor has not shown any evidence of an ability to integrate companies into one cohesive organization. DBL is probably the low cost manufacturer in the world with long red cell dating, Immucor has taken zero advantage of this with respect to the US. DBL is still likely the low cost maufacturer in the BLUD group (absolutely no pun intended) with GBL in.
Immucor is buying sales and manufacturing capability as far as I can see. Both BLUD and GBL have similar sales forces, experienced in selling regents for less money than the contract before. Capital Equipment sales experience is virtually zero. Now you will have twice as many unexperienced capital sales people as before under just as inexperienced capital sales management. Obviously the sales forces will be merged and cut back, hopefully with the addition of a new breed of sales person and senior sales management. My bet is this delays ABS 2000 placements even more. Confusion in the market will be a good thing for Ortho as the sales forces are rationalized.
At first glance this is one deal that makes me ask the question why? I don't see significant enhanced shareholder value down the road for the merged companies.
What sort of an after tax multiple is BLUD paying for GBL?
See Ya,
Your Analysis is Right On
maygofishing
Sep 22 1998
9:09PM EDT
DryFlyFan, Ok, you figured it out. And I might add, your analysis is right on the money in my view. Which lets me know you are not an innocent bystander in the BLUD- GBL-Ortho blood bank business. Question is, what is the EBITDA multiple for Gamma? Is BLUD overpaying for the business, or can they pull off the integration strategy of the diagnostic blood reagent field and emerge as THE company vs. Ortho in the blood bank business? |
