"RBC Capital initiates coverage on Catamaran (NASDAQ: CTRX) with a Outperform. PT $60.00."
Sentiment: Strong Buy
Sentiment: Strong Buy
Thanks, aviacionado. Still in MZOR. I also put some MAKO profits into Adept Tech and Arcam last week incl. calls on ADEP. After getting used to MAKO languishing, it's strange to see stocks in the green day after day! Still holding MAKO JAN 30's as a lotto hedge but that's it. Sent message to yahoo to flip the switch on the MZOR board. Some day they might get around to it. GLTY
MAKO Surgical announced that it has entered into an agreement with Pipeline Biomedical Holdings to acquire substantially all of Pipeline's business dedicated to the design, development, manufacture and commercialization of orthopedic devices and related instruments for use with both robotic devices and manual medical procedures. The purchase price for the transaction consists of a credit for a cash down payment previously paid to Pipeline in the amount of $2.5M and the issuance of an aggregate of 3.95M unregistered shares of common stock of MAKO. The parties expect to close the transaction by October 4.
...it were to happen, maybe HHI? They own part of Curexo from whom MAKO licenses a key patent. Or maybe from Hitachi or Toshiba? See snippet from this late 2012 article:
"...Hyundai Heavy Industries Company (Ulsan, South Korea; unaffiliated with the Hyundai Motor Company) is best known as the world’s largest shipbuilder, but earlier this year (2012), HHI announced it’s strategy to become a leader in making surgical robots. It already makes Robodoc machines under license, but will design new six axis robots for arthroplasty—with the goal of capturing 60% of the world robotics market for joint repair and ligament reconstruction by 2015. This is yet another South Korean challenge to Japanese companies, like Hitachi and Toshiba, in medical technology."
Clearstone- thanks for the kind words. I thank you and many others such as iUSA, Kay, etc that kept us all in the game when things looked bleak. Hope we can continue this on the "next great thing". I did alright. No where near what I had when the stock was $45 and I mostly held but a pretdecent exit in the green. Wish they had gone it alone though or at least a partnership instead.
InvestorUSA- it's interesting as many believed we were at most 12-18 months from sustained profitability with maybe the first breakeven quarter next year. The hiring picked up in the last few months with quality postings indicating aggressive and confident expansion I.e. test engineers, principal engineers, EU/South America sales position, etc. I think the retail investor picking up on the total knee timeline and patent apps for FAI, etc hastened Stryker's decision to buy us out now rather than the end of the year. I suspect they first made overtures when we bottomed around $10 and became concerned as the shares made their way to $17 after the Q2 numbers were revealed. They might have worried that if the pps hit $20 a 50% premium at $30 might not get enough votes. I also think that despite profitability in 2015, the platform was growing in such a way that updates and add-ons would no longer work and RIO2 was on the way just as the replacement cycle was starting. Cash would be needed to revamp the production lines. The last barrier to MAKO crossing the chasm and widespread adoption was the implant offerings. By adding Stryker implants to the Restoris offerings they can do that. Rather than a buyout, a partnership might have been better for the shareholders and fiduciary duty, will, and is being questioned. There wasn't a bidding war and might not be, but we'll see over the next few weeks now that the other players are aware of the deal and crunching the numbers and scenarios. Doubtful but I've hedged with $30 calls a few months out now that I've sold a majority of my MAKO holdings. GLTA
Yeah, strange number. But ok. Anything larger than a certain amount gets thrown out as the break-up fee is ostensibly to allow the suitor to recoup losses but is not allowed to be so high as to thwart a superior bid. They are generally in the 3-4% range.
True. A competing bid will need to "come over the top" and not be instigated by MAKO. This has obviously been planned for awhile as Stryker would have needed confidential access to MAKO's books. Meaning that during the Conf call a couple of weeks ago, Maurice knew and was cool as a cucumber as he gave us his presentation. No wonder there weren't a lot of "umms" from him this time!
Thanks for the recap! Agee, $61M in the grand scheme of things is not an obstacle to another suitor, if any. Just skimmed through the complete 64pp merger agreement and didn't see any reference to the previously mentioned acquisition by MAKO of another company.
Lol. I did buy JAN 30 calls yesterday as a lotto play if a bidding war ever breaks out. Sold off about 2/3 of my MAKO holdings so far including core stock, OCT $17.50 calls and NOV $17.50 calls.
Well, if I had paid more attention to what I wrote above, I could have bought a ton of stock/calls. "I doubt Stryker is eyeing MAKO" Grrr. Nevertheless, its been a crazy ride and I hope to cross paths with many of you on other boards as well.
Low probability, but I wouldn't rule out someone offering a couple bucks more in the hopes of snagging MAKO or causing Stryker some financial pain although Stryker is sitting on a $4.5B cash pile. Bid would need to come pre-vote so they have some time.
There's the cost of the transaction plus MAKO is issuing 3.6M shares to acquire a mystery company prior to the closing date for between $60M and $120M depending on the price of those shares.
Thx! I'll check em out. DDD is on my watchlist. Speaking of 3D, What are your thoughts on XONE? Re: MZOR I see they have their US HQ in Florida:
"...When Mazor Robotics, an Israeli company that produces a robotic guidance system for spinal procedures, was looking for a spot for its U.S. headquarters it considered New York, Boston, Atlanta and Dallas. At the urging of one of its customers, Florida Hospital, the company began looking at Florida and ultimately decided to locate in Orlando.
"There’s a lot going on in high tech, a lot going on in medical. You had a new medical school, two major hospital systems, Orlando Health and Florida Hospital, which is access to many types of health care providers,” says Christopher Prentice, Mazor’s vice president of global marketing. The sunny weather, he says, was also a plus: “It’s not hard to get surgeons or executives to come to Florida not only from the U.S., but from around the world, because we’re a global company.”
I think MZOR will replace MAKO as the long term spec play. Unfortunately, it's been zooming higher lately and more so today on the MAKO buyout. I'm an accumulator in the $15's but might initiate a 1/3 position this week regardless. Hoping they start offering options at some point to grab some Leaps. I think they will be acquired between now and EOY 2014. If you google search: ladenburg mzor "we are initiating" (use the quotation marks), you will come across a 39 page research pdf from earlier this year. The price has well surpassed their target but they reiterated in August and the background info is still sound. Read it and let me know what you all think. The message board is not active yet on yahoo but I'll see if I can get one going on ihub in the meantime. What are some of your ideas? And thanks to all of the great posters here that made this such an unusual and insightful message board.
Thanks to you and many others, too! Glad you got out ahead. I think I bought your daughter's calls! It's nice when the options finally do hit. It was nice to see the $15 Sept calls in the money and now this. GLTY
It's over my head but I'm sure the market maker is happy to buy as many shares as folks want to sell at $29.50 knowing he'll get $30. Might explain some of that perfect flat line on the chart to our right at $29.50.