Cistron Biotechnology(CIST)$.30 Message Board

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

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To: Steve Harmon who wrote (1796)	12/9/1998 12:05:00 PM
From: Walter Morton	Read Replies (2) of 2742

Well, Steve, let's walk through this. If CIST bought all of HMGN's stock for let's say $10 million in cash and debt. The CIST shareholders would have net profit on the bottom line divided by the same amount of common share outstanding as are outstanding today. Cash level and debt level have no impact on earnings per share. We would have net profit of about $300,000 divided by 22 million shares for an earnings per share of $.013. Now $.013 X 25 = $.325. WAIT! DON'T STOP reading yet! CIST is currently making a lost and is selling for $.24. That stands to reason that CIST could go even higher than $.325. Further, somebody at the top would loose a job and that would also contribute to profits. Imagine the profit gained by not having to bay Genome Securities or by eliminating those people at HMGN who make those decisions. HMGN has institutional investors to the tune of 17%! Now, somebody with money will know that CIST has a $30 million deal with PMC. Further HMGN offers 110 product compared to few offered by CIST. The desire alone for one stop shopping should increase CIST sales. The HMGN name will also help CIST sell more products. CIST would also be making an intellectual investment in proven people and products: HMGN has FDA clearance on several (I think nine) products in 1998 alone. CIST would gain additional expertise in applying for FDA clearance. CIST shareholders can't lose. The question is: Why should HMGN accept a buy out by CIST????? Some answers to that question could be: Future cash flow for R&D (from the IMNX law suit). Potential $30 million deal with PMC plus royalties. What do you think shareholders??????

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