Well said ainsleym, about the potential for CYP to be taken over too cheap. I think this is a very real possibility, so I thought I would start a new thread on it.
Cynata directors themselves have publicly stated this same fear (see below), that they will be taken over too cheaply. They know the value of this technology more than most and for them to publicly state that this is a likely event makes it quite realistic.
Given the huge valuation premiums applied to stocks like CYP in North America, and the revolution in medicine that this will feed into it is very feasible that a US company will look at CYP's market cap of $65m and realise that if they took over CYP their own company's mc on this technology alone could well add at least 10 times that if not more. The first movers and leaders in such hot new boom sectors normally always trade at valuations much higher then reality dictates, CYP may be no different.
Given that CYP management have done a US roadshow and have a US investor relations firm promoting them in the US, it may only be a matter of time before a bid is lobbed in front of the CYP board. Potential bidders will soon start to become anxious that others will bid first and that they will miss the boat if they do not hurry up. Even if it were for $3 the buyer will still get a massive re-rating in the US. I could see a bidding war developing after the first bid too. I just hope I can hold my shares long enough to see this happen.
Even without a take-over offer, after 10 weeks of CYP directors promoting CYP there are probably enough large funds and investors who have been waiting for a big dip so they can buy in to cause a major rush when they realize they have to pay up to get a stake.
"Cynata executives, who are openly seeking to partner with a large pharmaceutical or biotech major to monetise the Cymerus technology, are talking up a storm, saying they "cannot overstate how important this process validation is" and claiming that "the risk for our shareholders is that we get bought out too cheap".
Cynata’s executive chairman, Stewart Washer, enthuses that stem cell medicine will “change the world,” proving as revolutionary as antibiotics, and that this is "as close to the fountain of youth as you are going to get".
http://www.businessspectator.com.au...cals/australias-next-big-thing-fountain-youth
See old post for further sources:
http://hotcopper.com.au/threads/revolution-in-medicine.2511818/?post_id=15241247#.VU11ZcscToo
(20min delay)