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Retractable Technologies, Inc. Message Board

  • kaiser.moore kaiser.moore Jan 20, 2014 4:35 PM Flag

    Let's go already and make a move!

    Either make a deal or tell the judge to rule already! If the judge trebles the ruling, and the $340M is the number, we'll see a print of 8.5+ on the same day. If RVP takes approximately half after taxes and lawyers, that's $170M or approximately $6/share, plus another $1/share in cash on the balance sheet now, and the company is worth another $1.5-2/share in intrinsic value. If the Judge reimburses legal fees, that's another $2/share. If there's an injunction against BDX for future monopolistic behavior, I would value it at an additional $2-4/share. There would have to be a discount for time value of money and risk of Appeal (25-30%); however, a bad ruling against BDX (particularly with any sort of injunction) would necessitate a deal post ruling, reducing the discount to 10-15%. Hence by my math $8.5/share would be right, especially since that's approximately the historical high.

    As a fan of BDX stock, I hope that BDX simply buys RVP for approximately $8.5/share (give or take $250M). RVP is worth $575M+ in the hands of BDX. ($400M of legal liability + $75M of intrinsic value and cash + $100M plus of synergy)

    All that said, either put up or shut up, and let the chips fall where they may.

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