BDX stock still went up with the $1.06 charge. If they settle for as little as $250m they would show an additional $91m profit this quarter. This would be a win-win for them. Factoring in the attorneys fees and taxes this would net RVP $4 in cash per share (i.e. about $120m), making the company worth at least $5 a share fully diluted- double it's present pps.
Agreed that it is meaningless but it is still constitutes illegal manipulation. I guess it comes with the territory- thinly traded AMEX stocks.
Had a bid in for 1400 shares at $2.51. At the close it is showing my bid (unfilled) and a last trade at $2.58. At 4:00.06 the MM prints a trade at $2.50.
What a farce!
The bottom line is that they crushed the numbers and other games are in the pipeleine. The AH trading is not a good indicator on how it will trade in the future once the numbers are fully digested by institutions. I am sure you will see analyst upgrapes which will fuel the momentum upward.
I had a bid in for 1200 shares since 3:10 pm at $2.51 and the stock trades down to $2.47 at the close. You guessed it, I did not get a share. The MM purposely shows a late print to paint the tape.
I took advantage of the drop and added substantially to my position. I had several bids in at $2.40-$2.48 from 3 pm to the close and did not get any more stock despite the fact that it traded at $2.48 and I was the only bid showing. My average is now down to about $2.75. If it drops again I will be buying more. I do not buy on margin and I am a patient investor.
The drop does not worry me because there was no news and the stock is thinly traded. This could have been program trading, short selling, an institution cleaning house or a margin call for someone who bought too much on the run up to $4. There is no real way of knowing.
Shaw has a right to be a little greedy on this one as he is the one holding the loaded gun. BDX tried the case and lost- are they smart enough to throw in the towel before Judge Davis slaps them down to size?
I didn't mention this earlier, but Judge Davis is a patents law expert and ruled against Microsoft in 2009 and entered judgment against them for $209m. He also granted post judgment injunctive relief, so it is clear that he is no wall flower. Microsoft appealed and lost and ended paying another $30m.
BDX has to be irrational to risk facing the wrath of Judge Davis. I say, cut your losses and run before you have your #$%$ handed to you on a silver platter.
The settlement would have to be a lot higher then $200m if BDX wants to avoid the possibility of a knock out punch by the Judge. I think a good settlement would be for BDX to pay RVP's counsel fees (let's say $50m) and then buy the company for $7.50/share either in cash or stock. It would be a win/win for both sides as it would result in BDX reversing the $340m impairment charge and allow Shaw (and the shareholders) the option of taking BDX stock to avoid a big tax liability. At a net total cost of $250m (taking in consideration that they will be acquiring the $30m in cash held by RVP), BDX buries this fiasco and ends up with intellectual property, equipment/real estate (valued at $30m pre-depreciation per the SEC filings and the end of its multi-million dollar monthly subsidy to three very big law firms that have appeared to have accomplished very little for them in 6 years of litigation.
BDX has next to no shot of winning the post trial motions. To win a Circuit Court appeal would also be a long shot. If BDX loses everything, the toll could add up to a $1b price tag, taking in consideration their expenditure of substantial additional legal expenses.
I just finished reviewing the 81 pages of docket entries relating to the anti-trust litigation. The list of attorneys representing BDX goes on for three pages- a virtual who's-who's of the big time international law firms (Paul Weiss Rifkind, Beck Redden, McKool Smith, Wilmer Cutler). RVP was represented primarily by Locke Lord, a well regarded international firm, with a regional office in Dallas. Roy Hardin,Esq, and Brad Weber, Esq. appears to have taken the lead for RVP. Weber is co-chair if the firm's anti-trust dept.
the dockets clearly reflect that BDX tried everything to convince the Judge to throw out the case. They filed Motion after Motion and lost virtually every one of them. One can easily speculate that the Judge has no love loss in favor of BDX or its counsel as they made every effort to pulverize RVP.
I was also able to access the pleadings and "Verdict Form". In addition to the damage award, the jury found that BDX violated all four of the false advertising claims that were submitted to them . This is clearly in violation of the Lanham Act.
Although RVP has not advised its shareholders of its litigation efforts, there were several motions filed by RVP on 10/15. they include:
1. Motion to Recover Defendant's Profits (i.e. disgorgement);
2. Motion for Injunctive Relief;
3. Motion for Attorney's Fees; and
4. Motion for Judgmernt on the Monopolization Claim (non obstante verdicto- meaning the jury erred as a matter of law).
All of these Motions were filed under seal and can't be publicly accessed. BDX will have 20 days to respond and the Court can then schedule a hearing. Suffice it to say that the we have been kept in the dark by RVP. In a way, that has been good for us since we have a great opportunity to continue to buy the stock on the cheap.
My opinion as to the value of the verdict and continued prosecution of RVP's claims has increased which adds to my confidence that shareholders will hit the jackpot.
that was fun to watch, especially the mark up at the very end to a session high at $2.82
I was out of the office and missed the low of the day, but picked up a little more at $2.70. It looked like there was a 30,000 share block that went between $2.64-$2.73. It only traded once at $2.60 for less than 1000 shares
it is a David vs. Goliath situation. Is it Goliath's goal to take no prisoners regardless of the outcome? Is it David's ego that will impair his ability to quit while he is ahead. David was able to land a lucky shot and knock Goliath off his feet. What next?
target depends on the court's rulings, especially on the post trial motions
if everything holds up as expected the stock is worth a minimum of $5- this is without the granting of equitable relief or a BDX buyout
$50m pre-judgment interest
$20m attorneys fees
($100m att. feees at 25% contingency fee)
30m shares outstanding
=$6 a share net
+$1.50 minimum intrinsic value (includes cash)
$7.50 min. value
risk factor .33333%
think about it this way- even if the stock appreciates to $3.50 in a year it would still result in a 20% return.
In the last half an hour, the bid showed 2700 at $2.70. My bid was 1000 of that amount at $2.70. Although the volume went from 30,000 to 41,000 shares all at $2.70 , my bid has still not been filled. How do you explain that?
There is no restraint since there are many other companies manufacture and market syringes.
My biggest concern is that Shaw has so much animus against BDX that he would quash any deal since he controls the BOD. Even though he would be the biggest beneficiary to a merger, ego may trump rationality.