Best MicroCap, Small Cap and Emerging Stocks to Buy - J Charles Assets
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legal issues is my guess. .well I pulled out at 31.75 from 19.50 buy was a great run tho..
My question is... the longer this process takes, does that mean they're truly doing the due diligence necessary OR are they finding too many legal issues??
AKRX seems to have a limited upside but a considerable downside. Superficially, today at 33.58, there is a possible gain of 0.42 if the proposed buyout is successful. However a review of many other mergers and acquisitions suggests that the process is neither quick nor guaranteed. Many deals fall through as due diligence uncovers new information. There are state and country regulatory approvals required as well as stockholder votes. Then there are the institutional and stockholder class-action lawsuits which can delay or complicate negotiations. In this case, according to a law firm press release: pursuant to the terms of the Merger Agreement, Fresenius will acquire all of the outstanding shares of Akorn common stock for $34.00 per share in cash. On May 22, 2017, the Company filed a proxy statement (the “Proxy Statement”) with the United States Securities and Exchange Commission (“SEC”) in connection with the Proposed Transaction. According to the Complaint, the Proxy Statement omits material information with respect to the Proposed Transaction, which renders the Proxy Statement false and misleading".
As an example of the , a buyout of Genworth Financial (GNW) was announced in October 2016 for $5.43 per share in cash. The stock currently trades at $3.72, but just before the deal was announced, the stock surged to $5.25. By the end of October 2016, shares were trading close to $4.00 and almost a year later the deal has not completed.
Another example of a deal mired in bureaucracy is the 2015 announcement of acquisition of Rite Aid (NYSE:RAD) by Walgreens (NASDAQ:WBA). The FTC has still not approved the merger, leading to lots of speculation on each side of the debate. The planned buyout price for Rite Aid was $9.00 per share but shares now trade just over $4.05 having dipped below 3.
Although the company agreed in October 2015 to be acquired by Walgreens Boots Alliance (WBA) for $9 per share in cash, WBA and RAD revised the agreement in January 2017 to between $6.50 per share and $7.00 per share, dependent upon the number of stores requiring divestiture to receive FTC approval.
So, there is much evidence to suggest that the risk in merger agreements is considerable and locking up capital for a possible 1.5% per annum premium is not commensurate with the risks involved.
As further evidence that merger valuations need to be measured, the Walgreen's takeover of Rite Aid has been mired in bureaucracy for 2 years and what started as a $9 per share offer has evolved into a current price of under $3. Those stock holders that hoped for the full takeover value are now disappointed. And the ones that bought at close to 9 trying to get the fractional improvement on the sale were devastated.
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.7 In other words, the correlation coefficient of the other stock
Why is not moving?It looks like not trading at all.
See why biotech/pharma shareholders are adding this breakthrough wound care to their portfolio.
• BioLargo’s 10Q states their Advanced Wound Care products are ready, all studies successfully completed, and they expect to file a 510K with FDA in less than 90 days • Woundcare market is over $6 Billion with high growth rate • Tanya Rhodes, ex VP of Smith & Nephew Wound Care Product Development is leading the BLGO/Clyra Medical 510K filing • BLGO/Clyra Medical Wound Care Products promote healing substantially better than competing products, fight infection better than competing products, are effective against resistant microbials, and are low cost • Sales could commence in first half of 2018 • Sales and or licensing agreement/s could be very significant • Company is now commercializing several other disruptive products in large markets
Deal is announced - $34 per share @ $4.3b valuation.
AKRX stock was dropped down to 24 dollars and now it is 33.3 ! What is going on ! Are they pegging stock now ?
Once this puppy is sold Kapoor will strengthen INSYS and then sell it. Yes they do have some DOJ issues but they have sells and approved products coming in.
Has everyone already sold and gone away? If so, it better be to Insys.
You look at the chart and see AKRX was 47 dollars , and now 33 , that is a shame that the company is not even going up , but down down and only down !
That's a lot of shares for relatively small increase of 43 cents. I suppose some are hoping for another offer or higher bid.
streetinsider noting deal is imminent, but the range is wide...so nothing specific, but is likely the reason for the spike after being down all day.
Down goes Fraser!
Where did the 32 dollar per share idea come from ? Does anybody know anything ? I also wonder why big money holding the stocks are quiet or they are in the loop with the takeover talks ? Why the hell would a company (in good shape) sell them less than 52 weeks high value ($35.40) ? No answer to any of these questions. I was right about this moron management. They are busy in their own freaking interest. Deeply frustrating !!!
Harry Boxer has posted his Charts of the Day video on AKRX at TheTechTrader site noting: Akorn, Inc. (AKRX) is doing well. On the chart, you can see the base, breakout, and pullback. We gave you a by on the swing thinking this is going to be temporary. On Tuesday, it has a nice reversal, running up to a high of 35.40, before pulling back and closing up 1.05 or 3.28%, to 33.04, on 5.2 million shares traded. That’s the best volume in about five sessions. Resistance is at 33.60, and then 35. If it gets through there, I’m looking for 39-39 1/2. It has 5.26 days to cover.
Received an alert this am about $AKRX from http://thesubwaytrader.com/?s=AKRX, you may want to take a look. Trading stocks investing. _on the rear window of mini - minor car : my other car is cadilak.
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