RE:RE:Stalledevenhand wrote: Guess you should take your money and subjective opinions elsewhere if you are so uninspired.
Given that they were not really going anywhere a year ago, I actually think it is inspiring. Say why you are going to do, then do it. That is the mark of good management. Run from crisi to crisis such as a retracing price causing share buyback is shortsighted. The volume is low, and the money is better used for other things.
aybe I am just too much of a ceo fan. I like how he handles the Q and A, even if the financials are not the most charismatic readings. And picking up a sales force of a derm company is exactly what they need.
I agree with 90% of this. I like the strategy too.
But where we might disagree is that I do not know how to *value* the new company - post-acquisition - because we just do not know enough about the quality of the earnings they purchased.
I strongly suspect that the reason they did not disclose earnings, EBITDA, or free cash flow at Innocutis is because there is none. Therefore now we are all venture capitalists, basically making a high risk investment in a business plan about how to turn around a company. Like you, I like the CEO's strategy. Picking up a US dermatology sales team was exactly the right thing to do, and further I admire his guts in doing this deal because he had to know the stock would take a big hit due to uncertainty.
Having said that, uncertainty breeds share price weakness, and I don't see any reason to enter too soon. I would rather have a quarter of results come out with Innocutis incorporated. I expect those to be pretty terrible results - because there will not be enough time to get the new sales force engaged - and there is probably going to be a much better price to buy them at.
At this point, I don't even have a calculation about what price is a good one, because I have no idea what those results are going to look like.