GREY:TSTIF - Post by User
Post by
echo2on Dec 30, 2015 1:29pm
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Post# 24419653
Breaking Out to New Highs - Growing Interest
Breaking Out to New Highs - Growing InterestGiven
1) most of the short interest is related to the warrants, and that covering these shorts by exercising these warrants will have minimal to no effect on the market share price (as the shares will just go to cover shorts), and
2) given that any slight downward pressure on the share price by some taking easy early profits on their warrants (not related to shorts) should be balanced and supported by those myopic shorts who took their positions around $2.00 (not anticipating the flood of positive recent news that has caused the share price to break to new highs) needing to cover
3) TSO3 will very likely be in a postition to force exercise of the warrants early in the new year in order to improve the cash position of the company to meet the higher than anticipated ramp up of production of units and consumables to meet accelerating sales and orders
4) getting the warrants out of the way will remove a technical overhang on the share price
5) both the new board appointment and the new CFO have M&A experience
6) it should take the FDA a couple of months to approve extended claims for the VP4 identical to Canada (though TOS will be having discussions re: duodenoscopes and other issues early in the New Year that could lead to accelerated approvals and new FDA recommendations)
7) some new cash could also be used to obtain a US market listing which would lead to far greater interest in TOS south of the border (where nearly all of the market's money is and the analyst coverage and exposure means something)
(i.e., the share price should jump much, much higher once the warrants are out of the way, FDA extended claims approvals are in hand, sales and orders continue to exceed expectations, a US listing is undertaken, and the company has more flexibility with more cash on hand),
do you think Getinge, or 3M, or others, will make an offer to take out TOS while the share price (despite new highs) continues to not reflect the intrinsic value of the company?
:)
Thanks,
And Happy New Year!
WKH