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Sarepta Therapeutics, Inc. Message Board

  • mjrruby2000000 mjrruby2000000 Apr 28, 2013 2:44 PM Flag

    Just Curious......

    What would happen if the rumors surrounding SRPT and Vertex were true, and their intentions were to be announced next week?
    How do you think the pps would be affected?
    This is all conjecture, "of course."

    Sentiment: Strong Buy

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    • Well let's say a potential buyout price were 80 per share. Since there are 31 million shares, 15% insider owned + 67% mutual/institution owned = 82% (82% of 31 million is about 24 million shares.) The short interest of 7.8 m shares and adding to 24 million above gives 31.8---over 100% of shares either currently owned by institutions/ insiders or shorted (leaves out the rest of us btw, so well over 100% of shares already owned as above.)

      So: whether buyout of 40, 50, 60, 70, 80, or 100, at least 7.8 M shares have to be purchased above that price for shorts to cover. This doesn't consider the puts and calls that have to be closed out.

      It makes me think of Volkswagen a few years ago that went to 1000 briefly in a situation where shorts had NOWHERE to go but buying up.

      Bottom line: pps would be turbocharged (hyper-turbocharged, giga-turbocharged, parsec-charged?) upwards.

      Sentiment: Strong Buy

    • Some months ago Vertex gave a presentation in which they sang the praises of Sarepta's achievement with eteplirsen. At that time people also wondered if that presentation might signal some interest by Vertex in buying Sarepta. With VRTX having received one heck of a boost recently, they may be motivated to try to take over this gem. Long term, either way is OK because they can grow as separate companies and they can grow together, but together the combined talents could give a whole greater than the sum of the parts.

      Sentiment: Strong Buy

 
SRPT
23.09-0.11(-0.47%)1:57 PMEDT

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