Jim Rogers is one of the best living traders in the world.
He has famously said how he made his fortunate: "I just wait until there
is money lying in the corner, and all I have to do is go over there and pick it
up.” Of course it is easier said than done and you rarely see this kind of free
cash lying at the corner. But I’m seeing it now.
BIND Therapeutics (BIND)
is a biotechnology company developing novel targeted therapeutics, primarily
for the treatment of cancer. BIND’S product candidates are based on proprietary
polymeric nanoparticles called ACCURINS®, which are engineered to target
specific cells and tissues in the body at sites of disease. This looks like a
futuristic technology, if successful, could be a great tool to aid cancer drug
development. But a fancy idea does not guarantee the business success. This is
exactly what has happened to BIND. It has run out of money and has recently
filed for bankruptcy protection. In the past several months, a few companies
have bided to buy the company. Today, it is announced that Pfizer Inc. won bankruptcy-court approval to
buy the assets of Bind for a final price of $40 million. Per the company
lawyer, they will use the money to fully pay all the creditor for the
outstanding debt and after that they will still
have about $22.5 million to be divided among Bind shareholders. In other
words, the deal enables Bind to pay its
bills and will allow shareholders to walk away with some cash. Based on the
amount of current outstanding shares in the market, the shareholders should get
approximately $1.10 for each share they hold. The interesting thing is BIND is
trading around $0.9 as I’m writing, a 20% discount that to me is almost like
free money. It is said the deal will be closed on Monday and I’m not sure if
you will still be able to buy BIND anymore next week. If anyone is interested
in the “free money”, probably tomorrow is the last chance to go to pick it up!
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