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EDAP TMS SA Message Board

  • bogusmammon bogusmammon Oct 5, 2000 4:10 PM Flag

    Please folks, tell me what I'm missing

    ULGX pays EDAPY $20 mil in cash and
    stock.

    EDAPY has around 8 mil shares.

    Let's assume that
    the rest of EDAPY is a wash with assets = debt and no
    value.

    Why isn't EDAPY stock worth 20/8 = 2.25 or
    thereabout?

    Even if the explanation were that investors do not
    think highly of what EDAPY will do with the money,
    there is a HUGE gap between $1 and $2.25. What am I
    missing?

    Sincerely, Bogusmammon

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Bottom line, nothing, except the stock price. I
      bought into edapy before the buyout of their prostatron
      divsion based on the discount to sales, and book value
      and the fact that the information pointed to the
      microwave treatment as an effective treatment for enlarged
      prostrate. (condition affects 14mil americans and
      reimbursement is approx 3200 i believe) If they got 10% of
      market and a license fee of 250/treatment (not unlike
      the visx for lasik) you can see the sales potential
      in the hundreds of millions of dollars.

      My
      look at the balance sheets showed no debt. However,
      imo the market is in general inefficient and it will
      take time for this to be noticed. What would be good
      would be if edapy would buy back some of their shares
      or put the whole company on the block.

      The
      way the deal looks now, ulgx could offer to buy the
      entire company at $2/share and sell off the other
      divisions after it was done and come out ahead of the
      current 8mil +stock
      (not that I would be happy at a $2
      sellout anyway)

      just my opinion

 
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