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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: ritzkid8 who wrote (9660)	8/27/2006 12:58:36 AM
From: John Metcalf	Respond to of 10280

Ritzkid, it's a circular argument to say that Sepracor's products don't justify the market cap, but justify a buyout. The reason that Sepracor would be a buyout candidate is that current market is only five times sales. The sales force is worth some money, plant-property-equipment are worth some money, intellectual property is worth money, cash and low-cost debt are worth money, and the pipeline may be worth a great deal of money. Short-term growth potential exists in Xop HFA and Arfomoterol, along with Lunesta. Most of the thread regulars have ten-baggers in SEPR since over the last four years. Rocky may have done better with options and convertible debt. I think the reason the company has not been acquired is possibly that management won't sell at less than a multiple of M/C. They may be right or wrong, but clearly the company is worth the current M/C.