Yep, nice find!
The time to do it is when the acquirer's equity is actually fully valued... not the case in this scenario. I doubt they would use precious cash to do so, since they still bleed cash. BIG long shot prediction, not likely anytime soon.
WOW, the multiple to sales that MYGN paid for Crescendo is unbelievable...
According to my research, Crescendo did $5.5m in sales in 2012.... even if 2013 re's were 3x or 4x that number, its still an extremely high multiple on sales.
While the qtr might be better than most expect, i don't think it will be anything amazing. i think this company is still 6 months away from putting up some very nice growth numbers.
I am long the stock and like it long term. But you had better go back and listen to the Redchip presentation carefully if you think revenues / sales will be up 74% from last years q4.
great find. microarray prenatal diagnostic testing is clearly the future. it will be amazing what questions they will be able to accurately answer over time.
If SQNM was going to buy CBMX in the NEAR TERM, which strategically makes sense, but they would have participated in the last round of financing and got a toe hold on this company on the cheap, IMHO. But to my knowledge, they didn't. So I doubt a buyout is coming in 2014. SQNM has plenty to focus on to get to break even by q4 2014, imho. They arent looking to spread themselves thinner by integrating the CBMX lab at this time. Possibly a buyout AFTER SQNM becomes profitable and its currency (shares) are more valuable... 2015
Cowen Group Inc. ("COWN") is a diversified financial services firm that provides alternative investment management, investment banking, research, and sales and trading services through its two business segments: Ramius, LLC, a global alternative investment management business, and Cowen and Company, LLC, a broker-dealer business ("Cowen").
COWN utilizes its capital base like a merchant bank to facilitate the growth of its different businesses. Since 1999 and through September 30, 2013, COWN has been able to compound its proprietary firm's capital at an estimated annualized rate of 15.9% vs 4.1% for the S&P 500.
Management owns approximately 28% of COWN stock and is incentivized to deliver long-term value for shareholders.
Summary of Valuation Analysis Below:
In buying COWN today at $3.90 per share, we believe investors are getting a growing alternative asset manager and a parent entity with significant tangible book value worth approximately $6.60 per share. At today's prices, investors also receive a leading and recently profitable middle market investment banking franchise in Cowen & Co. for free.
We see the asset manager (excluding investment income and after non-controlling interest) as worth approximately $2.20 per fd share. Combining that with the firm's tangible book value of $3.77 per fd share, shares are worth approximately $6.00 per share. Including the the broker-dealer (excluding investment income) which we conservatively estimate at $1.25 per share, we believe COWN on a SOTP basis is potentially worth approximately $7.25 per share.
We also employed another valuation approach for COWN utilizing a 2015 P/E analysis and discounting it back to beginning of 2014. Using this methodology, we believe COWN shares are worth approximately $6.00 per share (See detailed valuation analysis below for both approaches).
By averaging both valuation approaches, we arrive at a fair value for COWN of approximately $6.60 per share, a premium of 69% from a COWN
I agree. The float is still tiny, and funds are getting positioned, all we need is another piece of good news and it takes off to $4. CBMX is putting the building blocks together...
Its actually nice that we aren't getting big spike on news that (ultimately) reverses quickly. This move up feels different than the others this stock has had.... I'll take a more measured move that just grinds up 10c - 20c a day for awhile.... I think we are going to $4+
Why would ANYONE what to short CBMX when their are many more overvalued Biotech companies without ANY revenues? At least CBMX has a product, growing revenues and plenty of cash for next 1.5 yrs at current burn rate (which should only decrease)
$4-$5 by comparison. Both are small diagnostic companies with interesting tests that are very recently recommended as first line diag's. VRML has less rev's and is growing slower vs CBMX and they both have approx ~$15 in cash. CBMX needs to get out to some conferences and get the word out to prospective investors, they have been quiet for too long.
Thats weird, I thought you wrote this? "Any company with as much good news always and this small a float would be at 59 bucks. I'd love to know why it trades like it does.I haven't a clue." - trend traveler
trendtraveler, this will go higher over time. But you have no clue about this company. Maybe try a little research first next time before jumping in.