I'm trying to figure out exactly what this means for GIVN/stock. Here are my preliminary thoughts, with relevant intros from the press release:
1)"Given said it is analyzing applicable tax, if any, on its payment of $2.3 million from Olympus and will revise 2008 fiscal-year earnings guidance when it releases its second-quarter results."
I note that there was no agreement for Olympus to pay for GIVN's (substantial) litigation costs. Are litigation costs an off-set for awards from litigation tax wise? If not, then what tax rate will the award be subject to?
2) "In April, Given said the settlement calls for all past legal actions to be dropped and including a deal to not file lawsuits over current products. Each company will receive a cross license related to future pill-sized cameras."
This is not such great news for GIVN - it means that the company LOST its bid to be the exclusive manufacturer of pill-cams. The question is, will a cross licensing agreement with the 600 pound gorilla Olympus make up for the loss of exclusivity?
Full disclosure: GIVN is a good, profitable company, but its current price, in my opinion is inflated. I am therefore currently (nervously) short GIVN.
You are absolutely right PIAV. As I posted earlier this stock is inflated. You may look at insiders sell (for some reason they are not mentioned in Yahoo), whenever stock reaches 26 they sell. I am sure that huge number of stocks have been sold by "old" insiders who held the majority of stock options and left GIVN in the last years.
You've made some good points, piav. Olympus may become a contender after they develop and pass trials for their pill-cam, but that's years off and GIVN will have locked on the market and improved its product. Of immediate concern is the tender offer which expires tomorrow! All shares offered will be frozen for weeks until a settlement, that will leave you few for cover, LOL.