Silicon Investor (SI) -- The First Internet Community

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 : TheraTech (THRT) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Nealon who wrote (124)	10/27/1998 10:17:00 AM
From: geoffrey Wren	Respond to of 125

THRT slightly underpriced now. With Watson at 51, conversion value is $13.58. Yet it trades at $13. If anything, it should be trading over conversion value, not under. That is because if WPI goes up, THRT gains more than it loses if WPI goes down. If WPI goes to 40 (- 11), the conversion value is 11.84, or 1.74 less than current conversion price. If WPI goes to 62 (+ 11), conversion value is 16.24, or $2.66 more that current conversion value. This is due to the formula for conversion, which gives THRT more WPI shares per THRT share if the WPI price drops. Also, it is possible there could be another bidder to drive the price up. So I will bide my time for now. However, in the end I will probably sell. The Watson story still eludes me. They buy up companies and grow, but at their current size they are running out of room to do that, and their ratios are extremely high. Geoff Wren