I'm new to this. This rates as very bullish through Fidelity. I'm perplexed though as how does this co. get revenue? It seems like it has no operations and that it is seeking a sale of itself. The book value is also very low. So why would this stock be bullish? Is there something that values this? Please inform.
The company has massively downsized and slashed cost. The royalties/income flowing in now go to the bottom line as profit. (The last quarter was profitable.) With that said, the value of the company shot up last quarter. I expect this to happen in Q3 as well. Each quarter that goes by going forward basically stuffs the enzn bank accounts with cash. Money that can be paid out as dividends or boost that value of the company.
The hedge funds purchased shares of enzn between 6 and 7.00 a share. They need a few more dividend payouts just to break even.
This stock is going to pay out one way or another. The share price is going up over 3.00, the company is going to be purchased or dividends are going to be paid. It's really a win win or win situation.
It's really a pretty simple company, if you read the sec filings. What's complex is what's not in the filings-- like trying to figure out management's motives and intentions.
Enzon gets revenue from royalties. They have no clinical operations. Assuming they pay out dividends, as they've said, and assuming Pegintron doesn't completely disappear from the market, this is a very safe play. Perhaps, the deal with Belrose--which isn't clear--will unlock some additional value. Who knows.