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Cytokinetics, Incorporated Message Board

rinvint 1 post  |  Last Activity: Jun 27, 2016 10:09 PM Member since: Apr 15, 1999
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  • GILD hit another 52 week low today. With a PE of 6.7 and revenue at over 12 billion and a market cap of about 100 Billion the question arises at with point is GILD cheap enough for a takeover. Pfizer is looking to buy a larger company after astrazeneca and allergan takeovers failed. There are only three good choices for them. CELG, BMY and GILD. GILD is by far the most lucrative of them. After only 7 years the investment will be payed off and any year thereafter it will add more cash to Pfizer's bottom line. Companies such as Roche or even JNJ may have interest.
    There is another possible scenario. A leveraged buyout (LBO) would make a lot of sense. Take GILD private. Cash in on 12 billion a year for 7 years and IPO GILD thereafter again. At interest rates of almost zero this possibility is not that far fetched IMO. At $100 per share buyout price it would be the bargain of the century. Even at $120 a 50% premium to current stock price makes financial sense. That about a 10% annual return which in the current low yield environment beats any stock or bond investment.
    Just a thought

9.85-0.11(-1.10%)Jul 22 4:00 PMEDT