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Re: Is There An Opportunity With Exelixis, Inc.'s (NASDAQ:EXEL) 49% Undervaluation?“I agree exelixis management is a better team and should not make mistakes like Portola“ Nobody could have done much worse.. The following is from the Portola 14D filing .... I don’t know how you go from $26 plus a premium to begging for $18. “....on December 13, 2019, Dr. Sarin sent a letter to Mr. Garland expressing Alexion's interest in a potential acquisition of Portola. The letter requested access to due diligence materials in order to inform a potential bid for Portola and did not specify a transaction price or contain a description of any specific transaction terms. The closing trading price per Share on December 13, 2019 was $26.31” ============================================== “ I didn't make my point well which was that an acquirer is going to want to pay less than fair value so if $48 would be fair value, why would anyone pay that? They would offer less in my opinion. “ I guess you eliminate SG&A and add some bravado that the acquirer can do better and you get a premium. =============================================== “I haven't done any math as I just finished the school year today but I would like to think there is the potential for that $4 billion in revenue MMM talked about which might yield a higher fair value calculation and thus a higher offer than in the forty dollar range.” I agree, they couldn’t have been using $4 billion revenue. I would Think the cash flow generation would be much higher If they had. So can’t really evaluate without knowing assumptions around revenues. |
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