With FDA approval, EXAS is now an easy acquisition target by a large pharma or medical diagnostics Company that is looking to bolster organic growth. Just look at some of the market-caps out there for big players in the diagnostics business like Roche. Roche alone commands a market-cap of $127 BILLION and can easily use their share price as currency.
They could make a $4 Billion Dollar offer for EXAS and it wouldn't even move the needle of their capital structure. Anyone recall that legacy blood testing company GenProbe being bought out by Hologic for $3.7 Billion back in April of 2012?
Does the name Hologic sound familiar???
They bought out the CEO of Exact's previous company "Third Wave".
However easy it is to see how the financial side of a buyout might work, it isn't going to happen unless EXAS wants it to. So far the company has gone a long way toward indicating they want to bring their product to market themselves, and they've taken steps to protect themselves from a hostile takeover.
Since they have other genetic markers for, what are now virtually undetectable digestive system cancers on deck, I think they've got a pretty good idea that they can be a major diagnostics company in their own right. The bids would have to be pretty high to buy all that
Too much dangerous for short sellers, for little profit they are playing with fire. The day acquisition news comes and EXAS will open at $25 for sure. Down side risk is only $1-2. However, upside risk is more then 4 times from the current price. I read the company profile and noticed 100% FDA approval sometime coming soon.
But isn't the timeline of "soon" July, 2014? Why would EXAS clearly put poison pills into any takeover bid? Is there a high price that they will command and say okay/ I agree with what you are saying, but I wonder why the shorts think that they can play around with volatility?