Buy that dip, Chip. Traders who are buying now are hoping (betting) that Palm becomes a takeover candidate.
In the 1990s I was actively involved in M&A in the tech sector, primarily around Boston and Silicon Valley. Boston was absolutely the worst place to try and make a decent acquisition, and few of them I witnessed worked out for the buyers.
In Silicon Valley things were a little more straightforward, but one had to watch their back with the omnivorous acquisitor, Cisco. The flippers were reasonably well known to the cognoscenti and a quick visit to the premises often was an easy ‘tell.’ The Sand Hill Road crowd and the other denizens of the Lion and Compass were always a treat to work with. Personally I preferred sushi in town followed by The Compass Rose at The Saint Francis, but I was an east coaster, and almost looking for light meal and a drink to take the edge off the jet lag.
I priced mature companies and start-ups, largely based on the potential of their technology and engineering talent, much more so than existing cash flows which were often negative and a key factor in playing the game.
Personally I think zero is too low a price for Palm. Maybe two dollars, with their float of 168 million shares. Maybe even four dollars if it catches a bid soon from more than one interested buyer who wishes to jump start into their space. One would have to look at their portfolio of technology and patents, and franchise players in the engineering group, and the value of your own currency, your stock, and its prospects.
Cash deals generally are a strong indicator of pure intent, and are therefore rare. One positive is that the tech market in the US is so bad that retention bonuses ought not to be such an issue, except for a handful of key engineering talent.
The problem with companies like this is that new money, particularly the venture capitalists and white knights, like to come in and obliterate the existing common shareholders. This is the ‘last man standing’ phenomenon.
If someone makes a play for Palm, it could turn into a bit of a bidding match. But for now the vultures will prefer to circle and hove. And it would not shock me if a certain…
Every once in a while I write about topics that seemingly have nothing to do with investing, but for those that are able to connect the dots, they will actually find great value in these seemingly unrelated topics to wealth building and preservation strategies. As it is the weekend, I'm releasing an article that we originally posted on our website about the topic of meditation and investing on 19 August 2016. Again, to first read our articles when we release them, subscribe to our article fee...
The love affair was no surprise. Nor was the fact that the IMF had taken part in the immolation of Greece. No, the surprise was that the IMF would publicly disclose the extent of incompetence and massive rule breaking that had taken place.
The Ambrose Evans-Pritchard byline told me this would be a good story. Here’s his lead:
The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleade...
This morning's Second Estimate of Q2 GDP at 1.1% was a ho-hum event in advance of Fed Chair Yellen speech at Jackson Hole. And indeed the intraday range volatility of today's session was at the 70th percentile of the 165 market days of 2016 and the widest in 37 sessions. The S&P 500 opened higher, rallied with the opening of her speech, and then sold off sharply during with Vice Chairman Stanley Fischer's suggestion that a couple of rate hikes this year were possible. The index bounced back later in the afternoon to its -0.16% Friday close. The index is down 0.68% for the week.
The yield on the 10-year note closed at at 1.62%, up four basis points from the previous close.
Here is a snapshot of past five sessions in the S&P 500.
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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