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TS03 Inc Trust Units TSTIF



GREY:TSTIF - Post by User

Comment by StocksFTBon Jun 20, 2017 6:21pm
131 Views
Post# 26384886

RE:RE:RE:RE:RE:The 80L and the Getinge agreement

RE:RE:RE:RE:RE:The 80L and the Getinge agreement

Darrow I couldn’t agree with you more.  The suggestions of some shareholders to spend the cash on R&D or buy another company make no sense to me.  Tso3 is commercializing a great product.  If Tso3 wants to throw more resources behind commercializing the VP4 I could get behind that idea, but to spend the cash on the balance sheet  on acquiring another product before ramping the VP4 does not make any sense, especially if that is simply a strategy to avoid being acquired.  A better strategy to avoid being acquired for a low price is to disclose to shareholders what is going on with the business so that they can ascribe an appropriate value to shares. 

I do agree that Getinge will have the best information to eventually start the bidding process for the company, but that may not happen today, tomorrow or ever.  The fact that they raised $600m Canadian could mean absolutely nothing.  Getinge is a levered company that could just be paying down debt, or they might be looking at another acquisition like Novadaq or perhaps they are looking at tos, but who knows.  Personally, I hope the company isn't acquired because the value accretion is huge for every unit installed. 

Despite some of the comments on this board, Novadaq was not a market darling, it is a company that had the best product in its space but was not executing commercialization well (sound familiar?).  The CEO unexpectedly resigned in July 2016, and the company had been reporting weak quarters because they were unwilling to price their premium price product aggressively and had been missing street expectations on capital equipment sales.  Despite all these headwinds Stryker (which has a 1.5B endoscopy business) decided that Novadaq’s technology was worth something and they have given shareholders the option to sell their shares at a 96% premium.   Perhaps Olympus, Medtronic, Karl Storz or even Getinge might come in with a better bid to acquire Novadaq or perhaps not.  The point is Novadaq had a great product and eventually it was realized by a strategic buyer and now shareholders will have their turn to decide if they vote yes to the bid or if another higher bid emerges.    I think most investors in tso3 believe we have the best product, it is now all about commercializing the product and management giving shareholders the appropriate information to make our own buy/sell decisions without feeling like we are 10 steps behind.


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