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Mallinckrodt Public Limited Company Message Board

  • jhgrsrch jhgrsrch Aug 13, 2014 9:37 AM Flag

    What we may have is simply a situation where when 2 companies merge, many

    stockholders may not desire to own the new entity. Might take a while to get over many holders
    selling their shares. Especially for the company which got a premium and their holders wanting to cash out and take profits. This would put pressure on shares for a while.

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    • Explain again why "many shareholders may not desire to own the new entity." Is it because investors don't like companies that are growing at a rapid clip? Is it because investors don't like companies that have beat consensus earnings estimates by 20% - 40% for each of the last four quarters? Do investors not like to see a 10.4 forward P/E ratio on a high-growth biotech company? (When one could argue that the 10.4 P/E is light, considering the company routinely blows through earnings estimates...) Or perhaps investors don't like to see Paulson and others loading up on shares?

      Thanks again to the shorts who knocked MNK down over the last week. It provided me a wonderful new entry point!

      Sentiment: Strong Buy

      • 2 Replies to punsterr
      • There are lots if reasons someone might sell. First of all, people are buying and selling every stock all the time. In addition, maybe people owned QCOR from a positive experience with ACTHar or maybe they understand the science behind it. Maybe they liked the margins better. Maybe they liked the beat up price. Maybe they received advise from an advisor or friend to buy it. Whatever it is, not all those people will keep MNK. I will, and it is clearly a good value, but I just wanted to point out there are many reasons people could decide to move on.

      • he is a FUDmeister - we may see plenty of this as the shorts try to get out of MNK for less. Or even more foolishly, try to make a niche for themselves in MNK. If they try, one day they will have a rude awakening....

    • You have 10 posts; none with any amount of thought, so I congratulate you on stepping up your Troll FUD game and trying to post something insightful! It's nice to see you Trolls at least try to pretend that you know something/anything about the company. When you try, I take additional pleasure in watching you drown.

      In an effort not to be rude, I will answer your question. I'm a Q long. Still holding my shares and waiting for them to be transferred over to MNK. While waiting I've also been making small buys in MNK just to get my feet wet. Not sure if I'll reinvest the $30, but I can tell you that I won't be selling my MNK for a considerable amount of time. That is unless it squeezes above say $150.

    • True for some, but many QCOR longs will take that $30 cash and buy more MNK. Also consider the new-MNK will be a much larger, more stable company, and when you compare it to it's new peers it has a VERY favorable rev-to-market cap... implying that the shareprice needs to triple to hang amongst its new friends.

    • guys who do NOT want to own the new MNK have already sold. they've known about deal for 4 months, and there's been plenty of opportunities to cash out along the way, especially since there's no premium to hanging on. besides, if the holder is small cap fund, they need to sell anyways as combined company will be $9B+ mkt cap. therefore, if there are sellers, it may be some small retail guys who see MNK in their statements and just sell their misc shares when the sept qtr ends.

      • 2 Replies to my_honest_opinion
      • MHO - by the same token, the new combined market cap will make them available to purchase for funds who couldn't invest in MNK because it had a market cap south of $5 billion. And the combined value will be pushing $10 billion soon enough and that means it can be bought by large cap funds.

      • How short sighted of the sellers. MNK has enormous potential along with a very astute management. I intend to hold my new shares, add some to bring the total #s of the new shares to the 4,000 mark and look into purchasing something new that I have been following CTRX. I don't have tax issues because all my investments are in my IRA so no tax until I take my profits.

        Sentiment: Strong Buy

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