Because they know ea drug is a longshot imo. Big pharma throws around 3 bill likes its nothing. BMY completely wasted 3 bill on inhibitex and didnt mean a thing. And janssen only gives achn less than 300 mill? Ouch
Much more upside imo. Do your DD. SRPT is filing NDA and they will own all revenue. Achn nowhere near nda and would own tiny piece of revenue on off chance they get nda. Yet achn has the higher market cap. Dump achn buy SRPT. All imho
I mean anyone but the pumpers. Good news is management has buku cash to give themselves tremedous raises and free shares. Good for them
Yes it is, achn is basically admitting drug approval was longshot. Janseen put up very little, they see this as a big gamble. Hey maybe it will pay off. But the longs on this board were dead wrong. NO BUYOUT. No surprise to anyone but the longs
Yep congrats, we are trading where we should have been trading last summer if they had dumped CG then, but created a tremendous buying opp. Congrats longs
And its one of the reasons the Aventine acquisition makes so much sense imo
Master Limited Partnership. I believe its a way for a company to legally structure itself to generate healthy dividends for its investors:
A master limited partnership (MLP) is a limited partnership that is publicly traded on an exchange. It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.
MLPs are limited by United States federal law to only apply to enterprises that engage in certain businesses, mostly pertaining to the use of natural resources, such as petroleum and natural gas extraction and transportation. To qualify for MLP status, a partnership must generate at least 90 percent of its income from what the Internal Revenue Service (IRS) deems "qualifying" sources. For many MLPs, these include all manner of activities related to the production, processing and transportation of oil, natural gas and coal.
Some real estate enterprises qualify for a similar tax treatment as a Real Estate Investment Trust (REIT). Other publicly traded partnerships, such as Blackstone Group or Cedar Fair, do not qualify for pass-thru tax status and must pay federal corporate income taxes.
MLPs pay their investors through quarterly required distributions, the amount of which is stated in the contract between the limited partners (the investors) and the general partner (the managers). Typically, the higher the quarterly distributions paid to limited partners, the higher the management fee paid to the general partner. This provides the general partner with an incentive to maximize distributions through pursuing income-accretive acquisitions and organic growth projects. Failure to pay the quarterly required distributions may constitute an event of default.
Because MLPs are classified as partnerships, they avoid corporate income tax at both state and federal levels. Additionally, limited partners may also record a pro-rated share of the MLP's depreciation on their own tax forms to reduce liability. This is the primary benefit of MLPs and gives MLPs relatively cheap funding.
They are voting now that its a tremendous deal for PEIX shareholders. All imho
Great. And then last question if I may, there is a lot of interesting terminals these days given a competitor is doing something that I guess we don't have all the details on yet, but your location in Stockton is particularly interesting given the future anticipated demand out of Asia. Can you discuss with us whether or not you have the opportunity to maybe expand your terminal capacity there? And what your thoughts are about whether or not you want to own your terminals over the longer run, or if you would be willing to maybe roll them into some other potential market structure?
Neil Koehler - Co-Founder, Director and Chief Executive Officer
Sure. Taking that last part first, it is certainly – it's been interesting to see what Green Plains is up to and we’ll watch that, and that does create a potential opportunity nothing that we’re moving on at this time. We've always said that we see our own production assets as terminals in these destination markets, you mentioned Stockton that’s a very good example. We already terminal quite a bit of railed ethanol from the Midwest through that plant to supply the market in Northern California where we have a market share that is well in excess of the combined production of our plants and the two other plants in California that we market for.
We have looked at projects and certainly have identified a project that would allow us to greatly expand that facility, add tankage and as you mentioned access the market, the Asian market, we do believe that when China opens up as an ethanol market that exports off the West Coast will be an important part of continuing to grow the exports of ethanol in the United States.
Our own ethanol that we produce given its very low carbon intensity, we believe we’ll always have a higher value in that California and the West Coast market with that regional carbon market leading the world, but the opportunity to use our assets to distribute other ethanol off the West Coast we do see as a future opportunity.
Lets see if 12 holds. Depends on margins today imo. Cheap stock, market now likes aventine aquisition at these margins