RE:you won't need to know when to selljabez3 wrote: been in this wayyyyyyyyy too long. originally discovered this when i was a shareholder of ID biomedical. Bought in originally at 3.50 US per share. have been buying more on dips and there have been plenty. never sold any at 9. stupid me.
but.....i have to assume i won't need to make a decision to sell. it will be made for me. i believe this mgt team is slowly cranking out their plan and the end result is they will sell this company for what i believe will be north of $10 US.
and i'm not smoking anything funny, yet.
agreed. a few scenarios I believe could happen, all of which have an upside for shareholders:
1) takeover by private equity - revenues are now > $100MM/year, the company is cash flow positive, growth prospects are big and there is an opportunity for a huge ROE/ROI.
2) stock sale to raise equity - funds could be used for a major acquisition or series of acquisitions, which are immediately accretive to cashflow and therefore accretive for shareholder value. the fact that bigger acquisition announcements seem to have slowed down a bit could point to this - perhaps they are lining up a bunch of them and will announce in conjunction with a stock sale? there is a reason 9-10 investment banks cover this name despite it's a small cap stock...
3) upsize in senior debt/credit line - similar to item #2, though they wouldn't be able to tap as much from the banks given debt service covenants, debt:equity covenants, etc.
if you look at the management team and the Board of Directors, there are many faces from ID Biomedical. they are no doubt growing a company to divest of, just as they did before. the question is when.