GREY:IPHAF - Post by User
Comment by
penguinwinson Sep 26, 2012 2:12am
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Post# 20414445
RE: What is ILJIN Life Sciences up to?............
RE: What is ILJIN Life Sciences up to?............
There could be many reasons that they did that. Consider many firms that abandon R&D activities in previous periods and decide to re-start R&D again. The firm may face a re-entry cost of, which would leave the firm earnings. Re-entry costs depend on the length a firm has been away from R&D activities. This time-dependence could reflect the depreciation of knowledge and experience accumulated during the R&D period or the increasing cost of updating the firm to the “changing” R&D activities. To allow for sunk costs to vary both across firms (with differences in size, experience, ownership and other characteristics) and time (changes in financial or credit market conditions, R&D policies that affect choices of firms, etc.).
Does not mean they are done yet but does mean they for sure will not be on the same deal, hence arbitration.
But who knows what they are up to and this has been way to long of a wait.