Thanks. I guess it all comes down to whether one is in a stock for a quick pop (or a drop, as the case may be) or for a longer-term result.
Generally, I find that ... over time! ... these metrics (P/Sales, P/Book, P/Earnings, etc) generally tend to move toward the center of an industry's figures. That be the case, I would evaluate an eventual target position as being closer to the industry average, all other things being equal.
Alas, all other things rarely are equal, because we are talking about discrete individual companies. But it does give us a hint as to what a useful market value might be.
And in this case, I elect to *not* take a P/Sales ratio of 0.5 "as a given" for ABTX, as postulated in your original message.
All of which does not yet begin to address your original question of whether it would be better to pay a premium to redeem the convertibles early or to just accept the dilution which their subsequent redemption would bring. I'm still working on that <grin>.
JSb.
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