GREY:TSTIF - Post by User
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bossuon Aug 14, 2019 8:29am
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In the News Globe says Loe moves TSO3 to ''tender from buy'
In the News Globe says Loe moves TSO3 to ''tender from buy' TSO3 Inc (C-TOS) - In the News
Globe says Loe moves TSO3 to "tender" from "buy"
2019-08-14 08:02 ET - In the News
Shares issued 93,564,808
TOS Close 2019-08-13 C$ 0.42
The Globe and Mail reports in its Wednesday, Aug. 14, edition that Echelon Wealth Partners analyst Douglas Loe is not keen on Stryker's offer for TSO3, but nonetheless has moved his call on the shares to "tender" from "buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Loe says the bid is "modest" in several ways. He removed his share target, which was previously $1.25. Analysts on average target the shares at 90 cents. Mr. Loe says in a note: "Though the Stryker offer is clearly below our previous PT, it does seem reasonable to us within the context of TSO3's recent revenue/EBITDA performance and when considering that TSO3's flagship technology has long benefited from all of the positive FDA regulatory regard that we expected to drive sales, and actual sales performance has not caught up to the technology in this circumstance. Although it is difficult to predict with certainty if any alternative offers could be forthcoming, our best guess is that interest in the firm has been widely solicited across multiple hospital sterilization equipment and endoscope reprocessing firms, many of which are aware of VP4 through prior alliances. ... We believe we are justified in shifting our rating."