11% move to $2.39 today. Still plenty of upside in my opinion. Really just math here IF they sell. Only other choice I suppose is if they buy another business. Doesn't seem likely activist investors would be ok with that.Aston04 said:
Posted this play before.. but back in.. Last time I got out during a runup following a buyout offer... Stock has slid back since...
Chek cap... (CHEK) Was a colon cancer research company. Research failed. Announced company for sale. First offer that was accepted was in exchange for stock of Keystone dental (private company) Eventually failed in December when activist investor research concluded wasn't a good valuation for shareholders... Several members of previous board thrown out in exchange for activist members..
With research shut down to nill last spring/summer - they have been conservatively burning 1 million dollars in cash per month (hopefully less monthly cash burn at this point-- last reported cash was as of September at 28 million). That would put them at 24 million in cash on hand for Feb-1 (no debt). Company currently valued at about 12 million.
There is also possible some IP and value associated with stock listing that could be harvested. Been trading at 2.07 to 2.25 range for a couple weeks. Feels to me manipulation by the activist investor to get more shares before sale. I've been buying at the low end of the range and holding for the runup I expect if/when the sale is announced.