cash or stock is a mirrors game they are playing, when they offered $33 in stock they said no they wanted a certain amount of stock and now that they got that they are back to cash. Well stock can be converted to cash with a click of a button and is very liquid so that argument is as full of holes as most of their arguments. The only thing to really look at is 1) stock price of DEpo if deal goes away 2) will the new company grow faster than DEPO with the seven reasons I gave above earlier.
The biopharma industry has taken a enormous price hit and depo has been held up do to the offer. I see no reaon to buy it but I would buy hznp because if the deal goes south then hznp will go up and depo will go down as the time goes by. depo immediately then they will both recover as the biopharma improves. Too much risk in buying depo now as it trades at same price or close as the offer and if offer goes so does price of depo might as well buy hznp if offer is good.
their poison pill is against ca law,#2#3#4 are all factual, and what I said was that anyone who said share price didn't matter was a liar. If you fit in that category ergo you are a liar. Everyone buys stock to make a profit so share price does matter.
I had a soninlaw that grew the IT dept where he went to work at a 10% commission from 230k to 3million and the guy cut his percentage so he left, rather a stupid employer but he didn't like my soninlsw making more than him (also he was an attorney)
that is what I call greedy stupid. cut your nose off to spite your face.
I personally think that with a 50% increase in revenue and a decrease in earnings that the CEO deserves a pay cut
read it more carefully if hznp was at 40 you would get 38 in stock that you could sell and that would or should make many more retail happy with deal than 18 currently
so he paid $6 and change per share for 63000 shares, not a bad deal and he did it near the low, good move for many reasons, taxes, fiduiciary, bonus etc.
that would go along with the rumor that beting freddy has stated about resumes from salesmen at depo going out. yet another reason to vote for the deal. losing your Salesforce and one that doesn't feel like selling when faced with being bought out. Who would want to keep that type of salesman, I would keep the ones that continued to sell and sold a lot.
sorry I missed the post that you were back in, nice trade congrats, I wished I had sold all mine back when they announced this depo deal. it would be nice to have the money to rebuy now.
that was a tortuous explanation to get to a conclusion that TW would trash his stock price and is so illogical I don't know where to start. Don't you think that a higher stock price above 40 would have convinced more maybe even you with a $38 price? Don't you realize what has happened to biopharma has nothing to do with this merger? Don't you realize that without the HZNP offer DEPO would be around 12 right now.?
you can be assured a lot of that is shorts and daytrading as that would be the entire retail portion of the stock.
ty freddy, when the proxy adbising services came out pro it was the final nail telling you that the MFs were voting for this deal. the stock price movement was a good incication all together the big surprise to me would be losing the vote. I just don't see it but if it were to happen depo has another 10 to 20 percent downside.
jh I don't remember your reasons for why the MF will vote against the deal here are my reasons they will
1) tax savings which will equate to more earnings/share
2)synergies which will equate to more earnings/share
3) savings on refinancing depo debt at half the rate which will mean more earnings/share
4) the stock price of depo has been slightly below the .96 exchange rate most of the last 2 weeks indicating it will drop if offer is not accepted and being held up only because of offer. It also shows most believe deal will be consummated.
5) a more mature Salesforce with proven record
6) a management team that is superior ( yours turned dwon a $33 stock offer and now will get less than 20 currently) Depo has broken CA state law, they are only interested in self interest rather than stockholders IMO
the war was over weeks ago, just a few skirmishes left from those that refuse to observe, lol. If you look at share price ol depo it has moved a little below the .95 offer, this was done when they began, HZNP will get the vote on the called meeting and the vote to depose all board members then you will be a HZNP stock holder as you wont sell out at this price. Then after 5 to 6 months you will be extremely excited as a HZNP holder. TW had the nails in this coffin the day he began the fight, he will come out as victor then you will see the lunacy of the depo deposed board and how they didn't work in your interest and passed on a $33 offer in stock for .95 shares worth about 60 cents on the dollar of what they turned down. Considering what happened in the market it would have been a stroke of genius had they accepted the first offer of $33 in stock.
REDUCE debt before forced to sell assets or default. buying back stock is not in the picture more likely they sell more.
boulder, I have to agree with you it is the best long term for this stock, these peons that want the small change are giving moreaway in stock price loss because management wont cut the distribution, It is a great financial move that is well meeded I expect from the conference call tha ti will get down right after the first of the year if there is no dramatic price change in oil. IT SHOULD HAVE BEEN DONE 6 MONTHS AGO.
I think his theory about hznp wanting price of their sock down is full of holes, they are paying .95 shares regardless price of stock is not significant in fact it would be easier if it was at 40. One of his theories I agree with is that with all the turnover in retail shares the last week or so will be bullish for the vote. I am absolutely convinced the vote goes in Hznp favor because 1) stock price is moving as if deal was done 2) both advisory services are recommending it 3) all the new stockholders don't want to see another 20 to 30% drop in share price 4) all the larger MF holders understand the long term play with tax savings, synergies and HZNp better interest savings and pipeline.
pb I cant hardly believe after the bashing of mike and I on not buying depo you have finally seen the light and now agree that it is not that great of a deal, is that because you are out, time to get back in was yesterday but you still profit handsomely doing it today.