Cistron Biotechnology(CIST)$.30 Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Steve Harmon who wrote (2244)	6/4/1999 5:11:00 PM
From: Vadim D. Marchenko	Read Replies (4) of 2742

I still do not understand the benefits of initiating the stock buy back, especially now when they are looking for a buyer. Strong cash position will make CIST a lot more attractive to buyers, and will probably be sold at a premium. On the other hand if cash is wiped out by the stock buyback (especially if you expect the buyback to drive the price up to $5), after the impact on the share price wears off, you are left with a company with no cash, meaning no floor on the price of the company and since they still have some burn rate - a possible need to find financing (how do you like the sound of "floorless convertible"). Of course, if CIST buys back YOUR shares at $5, you are a clear winner, but what if you hear that they decided to use their cash to bail out Soros at $5 (he still owns over 800k shares). I bet that type of deal will get you excited. But they are not likely to do that either, in the past they have bailed out only one fund at $.1 a share, which was a very good deal for us. I think at this point the best thing CIST can do is just find a few interested buyers and sell it to the highest bidder.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next