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TransEnterix, Inc. Message Board

  • investora2z investora2z Oct 31, 2013 6:56 AM Flag

    Higher risk

    The last few days have seen the stock rebound with slightly higher volumes. It had corrected after making its 52 week high in early September. It has appreciated 464% in 2013, and 393% on a 52 week basis. The merger with TransEnterix has boosted the sentiments, and the support of Dr. Frost is also one major factor responsible for increased investor interest. The company had raised $30.2 million just before the merger, with TransEnterix contributing 65% or $19.7 million, and Dr. Frost and other investors putting in the balance 35% or $10.5 million. The money has increased the prospects of the combined company. Both SafeStitch and TransEnterix will benefit from stronger finances and also from the expected synergies. Resources are critical for companies at this stage, and backing of Dr. Frost can help them get more capital from time to time. He has the resources and experience to help the company explore partnerships with other investors. Frost is on TransEnterix's board, and is also heading huge companies like Teva (TEVA) & OPKO Health (OPK). He explores synergies between his companies. Recently, MusclePharm, where he has a stake, invested in his company Biozone Pharmaceuticals (BZNE). Biozone owns the high potential proprietary drug delivery technology QuSomes, and MusclePharm can benefit from the technology to increase efficacy of its supplements. For TransEnterix, the merger can speed up the development of flexible minimally invasive surgical technologies, and SafeStitch can develop its robotic system SurgiBot and other products. It is important to remember that the benefits of the merger will take time to translate into numbers. The stock has already moved up quite a bit to factor a lot of the future positives. The sharp move has increased the possibility of corrections. So one can tag along, but with a clear stop loss in mind.

 
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