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DUSA Pharmaceuticals Inc. Message Board

  • Rincon_PR Rincon_PR Sep 13, 2011 11:21 AM Flag

    Rodman & Renshaw

    The conference presentation was an updated version of the standard overview. For those concerned about the patent situation, see slide 22 and listen to the discussion. For now, DUSA appears to be a nice growth and value story.

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    • When is DUSA going to be aquired or aquire andother Company. This one-trick pony must make it's sales Reps pretty nervous.
      HALF

      • 1 Reply to henryfanger
      • <<< When is DUSA going to be aquired or aquire andother Company. >>>

        Who knows!<G>

        While many have predicted (or begged for) a buyout over the years, I've long believed that DUSA will not be acquired any time soon. This is still true today, despite some good reasons for DUSA to sell out to a larger firm. A big buyer would have a much larger salesforce to drive sales growth, plenty of financial and human capital for more effective R&D, and could slash a bunch of redundant costs. It makes all kinds of sense but is very unlikely to happen.

        An alternative to DUSA selling itself would be for it to buy something. However, I do not expect an acquisition despite management's long stated goal to buy a product to sell through its salesforce. DUSA really blundered with the serious Sirius acquisition, and my guess is that management and the board are being very careful and conservative when considering acquisition options. This is consistent with the observation that for years now DUSA has said it wants to buy something but hasn't. Like they say, "Actions speak louder than words."

        So in the mean time, DUSA is starting yet another new clinical effort. Though others have failed, even if this one proves successful, it will not benefit sales for years. Fortunately this effort will not cost too much, so DUSA should continue to pile up cash. They have said they do not plan to repurchase shares or pay a dividend because they want to fund R&D and acquisitions. It could be some time before we see DUSA successful in the clinic or making a good acquisition..

        So I guess the bottom line is that I expect DUSA to remain independent and pile up more cash, just like many other corporations today. I also expect the seasonally strong Q4 results to be a catalyst for the stock to perhaps retest the highs over $6 in the next few quarters. The stock is a decent hold here...

    • "conference presentation was an updated version of the standard overview"

      I listened to today's conference call and watched the slides. LOL!
      I was thinking to myself, geez, you would think it's time to update those damn slides. Still using 2005 data in their estimated market size info!

      Spend a FEW bucks!! Update that damn data!!

      Still, though, DUSA is in such a sweet spot that it's very hard to mess things up at the moment.
      But will they find a way to do that?

 

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