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Enzon Pharmaceuticals Inc. Message Board

  • screwdd screwdd May 12, 2013 12:01 AM Flag

    Grazeldathudpucher

    You write some detailed posts and have been doing some reading. A Yahoo search shows you have posted only 15 times total, all on the ENZN board, including 7 in the last 24 hours. Yet you say you are neither long nor short here. Just curious, why the focus of posts on little ENZN and no other posts elsewhere?

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    • I have said some of this before, so please forgive. I am an active dividend/value investor. I normally invest on the long side via options. ENZN popped up on a screen due to the special dividend. Normally a very bullish thing that a company has extra money to return to investors. I thought it might be a good investment. I did a little due diligence and have recognized what appears to be the opposite. Liquidation.

      I spend a fair amount of time researching investments before I spend my money. That includes talking to people on these boards. I do my best to deal in facts, good or bad. This is a great forum to fact check. If I make a big factual error, you guys would take me apart.

      This company was a bit of a puzzle. But the options for a good outcome for stockholders narrow with every statement or non-statement this company makes. If there is not a miracle announcement from Enzon soon, I will make a sizable investment that the stock price collapses. I have started to build a position. The puts on this company are significantly underpriced if nothing crazy happens. At todays prices the stock would drop to $1.50 ($3.10-$1.60) or lower on June 5th. On Friday you could buy the $2.50 June put for $.10. At $1.50 stock price, the intrinsic value of that put would be $1.00. That would be a 900% return. That sounds wrong, but it happens. There are some dangers, but for now, I like the risk/reward. Normally the value of the puts will move up to near the value of the dividend by the ex date. These have not moved much.

 
ENZN
1.21-0.06(-4.72%)Jul 2 4:00 PMEDT