After listening to Marucci's presentation and corporate overview, and after reading the press release regarding the stellar and consistent phase-ii results for Rindopepimut, I believe Marucci is entertaining several offers from multiple big pharma companies. That's the reason for his positive tone, as LongV put it, and confidence. Those big pharma companies have seen the more mature data that will be presented in San Antonio in early December, and I bet they are salivating to get their hands on CLDX's intellectual property. After the release of the more mature 011 data, CLDX stock price will jump to between $15 and $18, as Ray posted on another thread today. A decent premium above that price for buyout by a major pharma company would put the share price at between $36 and $41 -- slightly more than 100% premium and CLDX market cap of about $2.5-$3 billion dollars. The tender offer, agreed to by CLDX management, will be announced shortly after the San Antonio conference, to close early in 2013. That would permit major holders and institutions to cash out for slightly less than the buyout price by Dec 31 and avoid paying the increased capital gains tax rate that goes into effect on January 1. Those who buy the stock in late December from the long-time and major holders will not mind paying the higher tax rates in 2013 because they will have a guaranteed gain in an uncertain global and economic climate.
"..to close early in 2013. That would permit major holders and institutions to cash out for slightly less than the buyout price by Dec 31.."
Interesting that CLDX management will refuse to sign tender agreements. Maybe they expect a bidding war beyond $36 and $41?
Did you also see who was going to win the Super Bowl in this dream?
Interesting post. I wonder what the full combined market potential of CDX-011 with Rindopepimut will be calculated at after the December presentation of CDX-011. The market cap of CLDX could exceed 2 billion dollars after the market potential is calculated putting the stock price valuation above $40 per share. I wouldn't be surprised if the total value when all is said and done would reach somewhere between $50 to $65 per share. Only time will tell, or course, but CLDX is approaching a major pop upwards regardless of whether a sale is closed or not. Very good times ahead indeed!
Sentiment: Strong Buy
Definitely the value of the company has increased. By how much is debatable. The tone of management is EXTREMELY confident. I think they belileve they can go it alone and create huge value as a stand alone going (and fast growing) concern. It must be now obvious to them that they have the data and pipeline in place to do so. It will become known publically in due time that this is why they have not inked a deal with pharma for individual products and will not settle for low-ball buyout offer either. It takes a big pharma company almost a billion dollars to develope just one marketable product and Celldex has two on the cusp of prime time- high value products at that, plus several early development programs with legs to boot. It would be smart for a pharma company to take these products now, resource the additional indications and capitalize on what Celldex has been working on for over a decade. `
Pure rhetorical baloney. We know about CDX-011. We know that not even a whisper of the sale of company has been heard by anyone nor any partnership either. We know that FDA approval of 011 s at least five years away, even if it MAKES the trial. We know management has said practically nothing since ASCO, and what they said was so tepid there was no movement in the price at that time. We know shares were diluted heavily less than a year ago. We know there is not a single investor who wouldn't do backflips if the share price was even $7 (let alone $40) by end of December. We know they're burning cash furiously.. More than anything, we know the share price has plummeted 20% in a relatively short time. There are reasons to be long, but the idiotic crap you spout isn't supported by facts--or even credible rumors. In a board filled with shameless pampers, political. ideologues and the worst bigots thus side of a Klan rally,this one takes the cake. I'm on the sidelines at that moment after years of being long, and as others like me wait for a reason to jump back in,it's important that malicious, pumping #$%$ like yours be discounted completely.,