Rumors that CNTO is in play. Certainly fits the profile discussed at the beginning of this thread, and still looks cheap to me - I own a few shares. Stock has always traded as if they are about to announce some terrible news real-soon-now - maybe the big short position has something to do with this, or maybe there really are some skeletons in the closet.
Peter
Headline: Centocor (NASDAQ:CNTO) rises on merger talk - analysts
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CHICAGO, April 21 (Reuters) - Shares of Centocor Inc.
(NASDAQ:CNTO) rose Wednesday as talk circulated that the
biopharmaceutical company might be a takeover candidate.
"I'm hearing there is a smattering of takeout rumors on the
Street, and there also have been rumors...about a potential
co-promotion deal" to team Centocor's anti-clotting treatment
ReoPro with a stent manufacturer, said Robert Toth,
biotechnology analyst, Vector Securities International.
"I've had plenty of people mention to me today that they've
heard Centocor being mentioned as an acquisition candidate,"
said Mario Corso, research analyst, ABN AMRO. "It would account
for the (stock) price increase."
Centocor shares traded on the Nasdaq market up 6-7/16 at
41-1/2 on turnover of more than 5.5 million shares.
No specific names of suitors emerged.
A Centocor spokesman Wednesday afternoon declined comment
on the rumors.
"Is it (takeover) possible? Sure," said Corso, who has had
a buy rating on Centocor for about six months. "I could see
Centocor being attractive for purchase. It's one of the few
profitable biotech companies. The industry is often talked
about as consolidating...so it wouldn't be surprising if that
were to happen...."
"Those are the rumors 'du jour' that are coming across
today," said Toth, who has had buy rating on Centocor for over
a year. "One is that Centocor is begin taken over and two, is a
potential deal that would team up Centocor...."
"Both could actually be positive for the stock," Toth
added, noting that Centocor is trading at a much cheaper
multiple than other biotech companies.
Activity in Centocor options also swelled on Wednesday,
with volume and implied volatility in the Chicago Board Options
Exchange options sharply higher than typical, options analysts
and traders said. |
