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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Tomato who wrote (11960)	1/29/2001 2:37:27 AM
From: Don Earl	Respond to of 78825

Tomato, If I'm not mistaken, drug patents are good for 17 years. Ichan doesn't have a reputation for looking after the welfare of other shareholders. I can picture two things happening. 1. Ichan gets voting control and does a leveraged buyout to grab the cash. 2. Ichan finds a buyer who will swap stock to get the cash. The best shot for shareholders would be for the company to actively seek a buyer. My guess is most companies would be fairly pleased to get around $20 million in cash for maybe $40-$50 million in stock. I don't think it would be a hard sell even if the value of the patents was assumed to be zero. It would basically amount to free money. I'm not a big fan of the OTC BB, but that one looks fairly clean provided the litigation can't come back on them. I don't think I'd bet the farm on it but it might fit into someone's basket of 100 net nets. <g>