Insider Daniel Bradbury sold 2100nshares for aprox $275,000. This seems to be a repeat of 2011 when ilmn went from over $70 per share down to $25 per share.
Jay Flatley just unloaded 30,000 shares at 139.90 for a cool $4.19 million. Marc Stapley unloaded 1422 shares. Is ilmn a sinking ship?
Sentiment: Strong Sell
How many of you think ilmn will go to $90 a share after earnings reported next week? It seems a lot of insiders are selling their stock in anticipation of a big selloff. Would it be a buy in the $80 to $90 range?
Let's hope they try to take over CBMX. I think shareholders would go for $8/share which would be around 70m
No ... see the other post. They are in no position to even try, without burning there hands on it ( overpaying, or losing money in the process ).
Not that we SQNM shareholders, do not want Jay to try. We like to see him burn his hands, payback for what he did in the past.
Part 2 ( darn 3000 char limit ):
Also... the buyout scenario has been talked about among SQNM shareholders for years. We already know that unless management agree's, the chance for it is low. Add to that, that there are less large companies holding shares these days ( more free shares on the market ). That makes it a lot more difficult to try anything.
So far, Illumina had not made any move that can be seen in public, as having any interest in buying SQNM. To me, it looks more that Illumina for "now" is more then happy, with the service contracts / reags sales.
The main problem for Illumina will be when the contracts expire ( 2016 if i remember correctly ). For years SQNM stayed very loyal to Illumina, but with the talks the last years, they do seems to think more & more about moving to different platforms ( or are using this, to "scare" Illumina ).
Wanting too or not, if SQNM changes there production line to a competitor, Illumina shareholders WILL see the difference in Illumina there quarters profits.
And while its true, that in SQNM there shares are undervalued, and cheap as hell ( less valued then Verinata, and we all know how much those guys are worth anymore these days ( patents? market share? *lol* ) ). You can be sure, that no SQNM shareholder will gladly sell there shares to Illumina. Lets face it, Illumina costs us a lot of money ( stock dropped like hell, after the Verinata news, sentiment had gone from buy to sell for a lot of companies, because it scared them... Verinata + deep pockets from Illumina ).
And now we are a year+ later. For us, it tastes sweet, that Verinata has become more of a liability to Illumina. But in all honesty. If Illumina tries a buy-out, you can be sure, that Illumina WILL pay a premium compared to other companies, for the **** they pulled in the past.
So ... Do not ask Illumina management to wake up, they already know the problems and there is no easy solution out. A buy-out / hostile takeover is not that simple.
Because any buy-out will only trigger the poison pill, like fishnforloot said. The problem is more complex then you think.
1. SQNM management had made it clear for years, that they refuse to sell the company to anybody. They have the attitude: We go at it alone.
2. You forget the bad blood history between Illumina & SQNM??? Remember that on 07 Jan 2013, Illumina buy Verinata for 450M. Yet, SQNM was one of Illumina there top clients in regards to reags sales at that time ( and they only did 90k tests then, now its almost double already and still growing ).
You can be sure, that more then a few people in the company had a bad aftertaste, when there main supplier buys, behind there backs, there competition ( who they sued / are in a trade war with ).
3. SQNM is holding a 60% market share ( and even seem to be gaining some ). Verinata has?? 15%? Its hard to be 100% sure, but with the latest numbers from Ariosa, it seems that: SQNM: 60%, Ariosa 25%, Verinata 15%.
Now, imagine Illumina buying SQNM. That means they own SQNM & Verinata = 75% market share. Only one big competitor ( Ariosa ), who have no patents, need to go IPO to gain cash, and are in the process of losing there main US partner ( and possible being shut out of the EU market, as they are planning on limiting export tests ).
Do you think that US regulatory organisations will just allow that, that one company suddenly holds 75% of the market with a buyout, and can crush its only competitor? For a deal like that to work, Illumina will need to do major concessions.
4. Do you think that shareholders will accept any "low" price? If Illumina trows around a Billion ( $9/share ) or more, sure, then you will get a lot of sellers, but no way that most will accept $6 or less. Things are moving forward for SQNM with good future prediction ( for now ).
5. What might also happen, is a bidding war? Lets say Illumina tries a hostile takeover. It can trigger other companies to also react.
Its not so simple as it seems
SQNM is likely not interested and would use their poison pill to prevent the move.
If ILMN loses the 540 case in the court of appeals, they are going to owe SQNM a boatload of cash.
Plus SQNM now has a faster, less costly platform available as an alternative to run their tests on once the agreement with ILMN expires.
ILMN had the opportunity to gobble up SQNM and they blew it. Now it's time to start begging.
extremely overvaluation.. I agree...
i am waiting to buy @ 110... at 105, I plan to mortgage the house, sell the boat and load upon ILMN
Sentiment: Strong Sell