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Trius Therapeutics, Inc. (TSRX) Message Board

  • siamesekitty711 siamesekitty711 Jul 31, 2013 1:55 PM Flag

    Piper says coupons

    worth $1.3X. TOO CHEAP now. BIGS will take your shares for the payout, it happened on IDEV (stock rose to the offer significantly). I am hanging onto my raft with all claws.

    Sentiment: Strong Buy

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    • My attitude is getting better with info like this. I was (still am actually) disappointed not to see the great catalysts coming for Trius not to mention holding for more than a year. To make such good money and be so blasé about it is a new one for me. But a minimum of a 107% return in a relatively short period of time (damn the STCGs) along with 2 dollar per share return on zero invested isn't so bad. I'll wait until they, whoever that is, take my shares. As always thanks to you kitty, beav et al for all the knowledge given and fun all this was and should continue to be.

    • Hi Kitty. Would you be so kind as to restate the part about coupons worth 1.3X being too cheap, shares being taken for the payout and IDEV rising to the offer, in plain english?

      Sorry about my newbness.

      • 2 Replies to drdonno
      • The 1.3X must be the present value of $1 paid out in 2013 and another $1 paid in 2018? discounted as it is contingent on sales hitting target. I heard the crv will be listed on the NASDAG. I don't know if 1.3X is the number but it is certainly higher than .20

      • On the IDEV deal the stock was immediately 5.30 (4.50 with $3 in coupons total possible for $8.50 total). I sold for the $5.30 (for 80 cents on the coupons the day the deal was offered, I didn't know if it would really happen), as the coupons were way out in time for approval of the testosterone oil formulation and octreotride analog. As time approached toward the deal (payment of $4.50), I think the stock rose to the $5.80's, giving about $1.30 in value for the 2 IDEV coupons. TSRX drug will likely hit the payout for both coupons = $2. If you have the stock on the day of the deal (13.50 cash buyout), then you will have the coupons which COULD be worth $2 in 2016. This $2 is being sold for 20 cents at a current price TODAY of 13.70. What I am saying is that Piper is valuing the coupons for something like 1.30. That would imply this would be worth 14.80 at the time the (13.50 cash buyout is done) the shares are taken out of our hands. So, when is the deal? Whoever buys on the day before the deal gets the coupons for cheap and gets their $13.50 returned to them. Once the 13.50 is paid the coupons are yours. I will take $2 in 2-3 years for 20 cents is all I am saying after getting my $13.50 in principal returned. This is all contingent on the deal going through and sales of TED meeting certain levels, which will likely happen. PIPER says it will happen and says the coupon is worth more than 20 cents ie 1.3X. The tie up is with when will the deal come and how long to tie up principal. IMO it is worth it. Don't get me wrong though I would like to see more in a White Knight offer or sweeter deal. The other option is maybe some think this deal will not happen at all so it is only 13.70 now. So we wait and place our bets. best to you

        Sentiment: Strong Buy

    • wait for the institutions to 'vote', I am hoping they feel the same way we do.

      Sentiment: Hold

 
TSRX
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