Just a word to advise those people either looking at this as a potential investment or those that are long at present, don't try to time your escape from this investment just get out or stay out. The only time you will make money on this stock is if you buy the day before they sell this company, probably at $9-10 a share, that will be about a 30% premium to whatever the stock is trading at the day before the sale is announced.
The stock is at $15 now so that of course won't be for a little while yet, first they need to pretend this acquisition will work and possibly try and do another one to hide the performance of this one but eventually the stock will slip into the single digits and they will look to dump it on someone. And no I am not a fortune teller but it does not take much to identify a strong trend when it comes to management and their historical patterns. If losing 30% of the market share in Testim in less than a year is not a bad enough sign then wait till you see that same team integrate an acquisition, it's like saying we couldn't beat the Jets so we will do much better taking on the 49'ers!
you are 100% correct. They overpaid for this acquisition. 6x sales is an absolute disgrace especially given the lack of IP around Testopel. The head of BD should be terminated, but desperation is a hallmark of Adams management style.
interesting thoughts. the ceo did plunk down $1mm at about $18 per share. and the baker brothers are the largest institutional shareholders. plus, results for an important trial is coming up at the end of this year. so let's not be premature. we'll see by the end of the year.