The royalty is 10% http://seekingalpha.com/article/1860381-pozen-investors-get-cash-wait-for-fda-update?source=yahoo
Not stupid - that's the way a dividend that is paid makes a stock react - however I agree it shouldn't occur until december 30 or 31
ANd also this... a PPS of a stock, especially bio tech stocks, is based on FUTURE perspectives. Look at the PPS of VVUS, SPPI, ARNA, ARIA, ACHN, DNDN, MNKD etc.... all these companies have lousy or no sales and have debts, burn hundreds of millions of dollars year after year, have CEO's with huge salaries and huge bonuses and have huge amounts of outstanding shares etc..... but still they have a market cap of +$500m
So POZN should definitly have at least a market cap of $500m TODAY ( = $17/share), based on accomplished things and based on the perspectives.
Especially when you already know today that next year we all will get again a huge dividend. There is NOT 1 OTHER company in the entire market with a PPS of $8 that pays 2 times in a row a HUGE dividend and probably many more years to go. NOT 1.
But a market cap of $1billion or $2 billion ( = $66/share) can only be reached when PA sales are coming in better then expected and huge dividends keep coming.
So I do not say you should get in in POZN when the PPS is around $20. But today the PPS is around $8 and that is rediculous low if you compere that with all other bio techs !!!
An approval of a pill based on aspirin and with an excellent trial record is 100% sure.... but because the FDA are crooks it is possible that they will delay the proces to make millions of dollars.... but a delay only means that the approval will be delayed by 6 months... so at the end of 2014, the cash of POZN will BE around $80 million
And the success of PA sales will NOT BE KNOWN in 2014. Because it takes more then a year after launch to see if a drug sells easily in the markets. SO for PA we will have to wait till 2015..... but that is allright because in 2015 the PA sales should compensate the lack of upfront payments.
I mean... although the upfront payments are a 1 time thing, the income of 2015 / 2016 should be equal or higher due to the PA sales in the USa and in the rest of the world and do not forget the increasing Vimovo Sales (and also the milestones which I did not included because we do not have the information about these things).
It could be that the income for 2015 will be a little less due to the fact that is simply take some time to inform people that there is a new and better drug in the market.....
And if there would be a delay, we have the chance to buy more shares at the cheap. So we should thank the FDA crooks
dude some people just do not know how to read. or just have a very difficult time comprehending how things work. They should not be investing here if they have to ask this many times how this #$%$ works comeon!
For once and for all, you must hold the shares through December 30 to receive the dividend. If an existing --pre or post December 6 shareholder sell his/her shares before Dec. 30, NO DIVIDEND.
Special ex-d rules apply when divvy is more than 25% of the ops.
Do you get it now? ? ?
I own shares of POZN but your math is based on guaranteed assumptions of PA approval. Right now the approval seems to be over at 50% probability. But not a guaranteed one. Also the upfront payments are one time payments. The key here is the first/future potential sales of PA.
I do not know of anyone who has said anything other than what you stated above. In my earlier post, I was just pointing out that if you bought the stock and it opens on Dec 31st less the tax free 1.75 dividend and your under water you could sell it for a tax loss for a write off in 2013. You would not be able to purchase for 30 days again or you would invalidate the tax benefit. You can also purchase on December 30th and sell the next day and get the benefit. There could be a Good Faith Violation depending on your account type.
This would not be a tax scam it's playing by the rules and some people want to move on and invest their money elsewhere instead of gambling on a positive result and unknown valuation on Jan 24.
"cwn600, you said "the last day to buy would've been the 6th, not the 11th" to qualify for the distribution"
Are you REALLY that dense? I said IF IF IF IF IF this had followed normal distribution rules, WHICH IT DOES NOT, only then would the last day to buy be the 6th. That was to show that your broker is STUPID and would've been wrong even if the 25% rule was not in effect.
"so how do you explain about whysimon' statement "You can buy POZN through Dec. 30 and it will come with what is known as a due-bill which entitles you to the dividend"?"
You mean, how do I explain that whysimon said the same thing I said? Apparently he's not stupid.
Let me anticipate your next question: Why is whysimon not stupid? I don't know.
To answer my own question, yes, you ARE that dense.
FORGET THE RECORD DATE. The sole purpose of the record date in this case is to confuse YOU specifically. It's been 100% successful, which shows that management knows what it's doing.
"and how about " For the existing share holders, can she/he sells their shares after Dec 11th and still get $1.75 a share for the total number of shares which he/she held on 3:00PM Dec 11th or he/she has to hold them until 3:00 PM Dec 30th?""
How about it? I already answered that directly and you're asking me AGAIN? Why?
See why I doubted that my explanation would be "one last time"?
by the special dividend. if the stock goes down, beyond the 1.75 it is no different than any other stock. also, any sale of stock can not be used as a tax loss unless you wait 30 days to repurchase the stock
By purchasing these stocks now and getting $1.75 dividend, then you can sell on December 31st for a loss for tax deduction. example you buy the stock at 8.75 today, on the 31st your cost basis would be $7.00 and the price falls back to $6.00 . You get a $1 per share loss for tax purposes, the Trade Date and not the Settlement date is used for tax purpose.
This could run up $10 for this alone! I'm sticking for Jan 24 myself but some people would just as soon take the quick buck and move on. I hope the price drops back to 6 and I'll use my dividend to buy more on Dec. 31st or Jan 2nd.
Sentiment: Strong Buy