| An SI Board Since September 2016 |
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DEPO |
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I am recommending Depomed as a low risk buy out candidate with a successful investor working hard for you.
Depomed is the recent target of activist investor Jeff smith of starboard value. He believes the company is undervalued and should sell itself to maximize share holder value.
Horizon pharma last year offered $33 a share for Depomed but the ceo did not want to sell the company. This is where Jeff smith comes in. He called for special meeting of shareholders for october 28 2016. He wants to place himself on the board and replace some of the older board members so he can implement changes.
Jeff smith has successfully campaigned yahoo to be sold to verizon. If he can sell and exert influence on a big cap company like yahoo..I am sure he can sell a small cap company like a walk in the park. Of course it is without risk but I am willing to bet on the jockey.
I think jeff smith bought his shares around $13 to $15 per share. I cannot recommend what price to buy depo but if you ever see it get taken down to that level..better back up the truck... buying it at $15 and down the road it gets sold to $33...thats a pretty good return.
Unlike my recommendation of buying rlyp which got sold at $32 a share to galenica. Depomed has a highly successful investor that will get this company sold if they get their way. I am 1 to 1 when it comes to buy out prediction. I am going 2 for 2. Depomed will get sold in the next 6 months especially if Jeff smith can replace the board this year
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