RE:RE:275 million US$$Comparing cash to market cap is not a good metric at all but I can see why people do this.
Don't make the mistake of just looking at the market cap. Market cap is what shareholders own, you need to add the people ahead of the shareholders in the "pecking order" and that is the debt owners. And debt here is very scary. If the assets were great, that would be one thing but with both Covis and AMCo being acquired with debt and with the write-off being with Covis drugs, they are writing off the assets without the debt. That is not good.
It's like owning a house, being maxed out on your mortage and the garage burns reducing yout total value. You might write it off but the lenders start to worry and start to get more involved if they feel the assets are less than what they are owed.
It appears the short seller thesis speculate that the assets are not worth as much as stated. With management writting off so much last quarter as a surprise and guiding lower for the rest of 2016, I have the feeling a writedown might be seen next quarter as well?
The short sellers have a strong thesis here. I don't see the longs having a very strong case. Very strong hope, wishes and suggestions but that's not how the markets work.
One needs to separate emotions from facts.