Thu, Jul 24, 2014, 12:17 PM EDT - U.S. Markets close in 3 hrs 43 mins

Recent

% | $
Click the to save as a favorite.

Novadaq Technologies Inc. Message Board

  • e11ndofwar e11ndofwar Dec 13, 2013 9:44 AM Flag

    andersongordon and Fish OT

    When you have a moment, would appreciate your thoughts on Cardica.
    regards endo

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • andersongordon@ymail.com andersongordon Dec 13, 2013 10:08 AM Flag

      I've been posting on the CRDC message board.
      Summary:
      There is a concerted effort by Applied to push down the price per share...two, in succession announcements to sell 500K of their shares (~3.6 million original holdings) since the submission of the stapler-cutter 510k. Why?

      If they are doing this for non-economic reasons (vendetta for Dr Hausen rejecting a low ball buyout offer?) that is possible but not likely. If they need cash the 1M shares at ~$1.10 @ seems unlikely, but when combined with tax loss of ~$2 @ that could add another ~$0.40 @ assuming 20% capital gains tax rate. Still this wouldn't move the needle for any normal institutional investor. Most likely they are trying some sort of squeeze play (my thoughts only---no actual evidence or information). If they can keep them from raising cash when they most need it (to finish the development and regulatory approval) for a potential block buster instrument, as well as limiting their ability to hire marketing staff and infrastructure needed to roll out in the US, they might force CRDC to a sweetheart deal and scoop up the company for pennies on the dollar of value. I don't think they could win in a head to head bidding war with Covidian or JNJ so this may be their best option. What are the downsides if they lose? They give up 1M shares at ~$1.10 and if CRDC succeeds and the price goes to ~$10 in 5 years, they still have 2.6M shares and forego ~$9 million gain. If they win and take the stapler-cutter in their winnings they gain a dominant entrant in the 3-4 $ Billion sealing/cutting market. At 10% net margins that could be worth over a couple billion in present value dollars. Would someone bet 0.009 to get 2.000? Some may.

      Other investors will be hurt by the process. I wouldn't do it but some would.

      GSA

 
NVDQ
16.98+0.15(+0.89%)12:11 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.