CC: Again confirmed Cash Distribution to Shareholder....
Although we shareholder have at first no gain if we get back our own capital by a cash distribution I will be happy with it. Why? It reduces my average cost base without changing our share price target of 20+ usd.
Not necessarily true if they get an IRS ruling and its judged a return of capital there is no tax, you reduce your cost basis for the stock. I had this happen years ago with another company on the 1099 u receive from your broker it will be clearly marked as return of capital. I am guessing they don't want to pay taxes either but who knows. If its ruled a straight dividend then yes its taxed at the 15% and your cost basis of the stock remains the same.
He did not . But... the first time he mentioned about a cash distribution, he said is was a possibility....now he reafirmed which make it highly possible. The board as to improve the amount of cash. PLachetka owns a huge pile of POZN stock himself so he is the first one to benefit from such cash distribution.
For us it is peanuts....because the PPS will go lower the same amount of the cash we will receive.
But the most important thing is the future.... in the past POZN had only high expectations for a short while. Before Treximet's approval, the PPS went from $6 to $18 because we all thought that GSK would make it a blockbuster drug. After approval it became clear that GSK only cooperated with POZN to protect their own migraine pills.
AZ is the same story, AZ cooperated with POZN to make sure that Vimovo not went in other hands to protect their own sales of Naproxen pills.
Now as far as I know, Sanofi doesn't sell any pills that can be used as a daily aspirin. So Sanofi will do their best to sell as much as possible PA.
I still can not get it why POZN shares are priced at $6.5
It only means that too few people are aware of the possibilities. POZN's PR machine su ck s big time.
On the other hand, once the results are in and the sales figures are good, the PPS will always follow at a rate of around 15 times net profits or iin case of a good yearly dividend at a rate of 25 time net profits.
Can you imagine that you buy a stock at $6 and 3 years later you receive a yearly dividend of over $1????
YOU do some DD and try to find some stocks with only 30 million shares out and that are paying every year a dividend of $1. YOu will not find 1 at $6.5
They will go at least for $30 which gives a 3.4 % yearly dividend