Nuvo Pharmaceuticals Inc NRIFF

Market value vs Real value example

[longondmx]

The big difference between market value vs actual value can clearly be seen with the following stock:

Bancorp (BKP - Toronto)

Trading around
.80 in November and now is at $1.39 and very likely to be much higher soon.

Bancorp's price increased to something much closer to its actual value of $2.50 because an investment firm is trying an unsolicited takeover of the company at only $1.22 per share.

Bancorp's response to the offer:

The C.A. Bancorp Board believes that Maxam’s $1.22 per share fails to provide full value for C.A. Bancorp’s assets and shares and is an attempt by Maxam to acquire C.A. Bancorp without offering adequate consideration to C.A. Bancorp shareholders. The Board cited a number of reasons for its recommendation, including that:
• Maxam’s offer is inadequate, as it significantly undervalues C.A. Bancorp’s assets and business. Maxam’s offer price represents a 49.9% discount to net asset as of September 30, 2009. The offer does not reflect the value of C.A. Bancorp’s assets, including its core private entity investment which has achieved an implied IRR of approximately 20% from inception to September 30, 2009.
• C.A. Bancorp’s cash, public investments (including Charter REIT and C.A. Bancorp Canadian Realty Finance ) and marketable securities alone have an aggregate value of $1.03 per share. Maxam’s offer is an attempt to use C.A. Bancorp’s own assets to acquire the Company and to thereby appropriate the excess value of the Company for itself.
• The timing of Maxam’s offer is opportunistic and is prejudicial to C.A. Bancorp and its shareholders.
• The Board has initiated a process under which superior proposals, delivering greater value for shareholder, may emerge.
• Maxam’s offer is extremely conditional, to the point where it is not a firm offer.
• Maxam’s offer is at a discount to recent trading prices. In fact, subsequent to its offer, Maxam itself has purchased Company shares at a premium to its offer price.


Not trying to pump this stock (although there are many reasons why the share price should go much higher), just trying to respond to someone's post about NRI's share price and what it should be.