Folks, Stifel also advised SOMX and it took them 12 months to find a buyer. When hired the pre-split adjusted stock price was 4.80 and it currently trades at 2.95, pending sale completion.
Morgan Stanley took 8-9 months to find a buyer for Encysive in 2007. That was a multibagger for those who bought low; however, the SEC filing detailed the long bid process: hundreds of pitch books were distributed, over 60 inquiries were received, 12 companies signed confidentiality agreements and about 6 actively bid. Secure data rooms were set up in London and Houston for due diligence.
Bristol Myers would have to make a high pre-emptive bid in order to lap the field and this is unlikely. TZYM management has to get an outside consultant to determine the price fairness of any offer.
For that reason I took my profits today and yesterday and flipped back to CYTK, which I had previously flipped to TZYM!
I believe there is adequate time to re-enter TZYM.
Until it doesn't. That's the problem. I agree that this may be dead money for a time, but TZYM does have a proprietary technology in MATCH that is very valuable, and they won't just give it away. As to what it's worth, we can only guess by using the amounts BMY paid for individual uses of it ... 80M. That's A LOT. I can't see this company being bought out for less than $1.50/share, and more likely $2 or $3 per share. Whether it's trading at .60 or .50 is pretty insignificant in that light. When a deal is announced, it likely won't slowly move up to those prices. It will just gap up before the market opens (even PM) and you'll be out. But, that's just my opinion. Do what you like.
I agree. Even a whisper of progress on a deal and it will move up. I would've waited to take profit, then, and try to re-enter, but everyone has a different agenda. Good luck with CYTK and hope to see you around TZYM at some later point.
Award that man a purple bunny.. yes , you are right .. news dies fast and a buyer takes time.. Bravo laddy I'm out as well... another point.. in analyzing human behaviour I find that those who discuss what they might have , in other words , buy out talks, mergers, etc.. they DON"T have it.. They are buying time and trying to keep you around ... got it ? good .. now move on