1) Make observations of charts, research and the make up of SHs and their potential impact on the future SP. e.g. His BG calculations have been quite accurate and calmed SHs.
2) IMO more importantly Wombat discusses peer comparisons with other similar companies. The importance of the peer comparisons should not be underestimated. The education of where the SP could get to in a takeover or licence scenario has helped myself and no doubt many others understand the potential value of Race. Upon success of any indication the window of value appears to be between $30ps ($5b Coy) and $200ps ($32b Coy). There are certainly enough take over examples at around $20b to suggest anything can happen. The point being I believe Wombat has helped educate people to not to sell out too cheaply, which would be a disaster for those wanting to continue the negotiations for a higher number. I don't know where it will land but I do know I am not selling until Dr. T and the board recommends an offer should be accepted.
I appreciate $30ps may mean retirement for some and they sell out. However, once Zantrene is proven and becomes a takeover target, a transaction will be imminent and IMO their would be little risk in holding until and deal is recommended by the board for a higher value. $100ps may mean your retirement and your children's retirement as well!
You maybe sceptical about this and that's OK. However, consider FTO. If Zantrene is proven to inhibit FTO resulting in the potential to cure 15% of 29 different cancers, IMO that level of efficacy from one drug is something the world hasn't seen before. What is that worth?
One proof point we have is Dr T buying on market. Can we agree he is the smartest guy in the room? Question, is he buying for a 2, 3 or 5 times return? I think not. IMO he is looking for many more bags than that.
We should also acknowledge that a complete takeover may not be the way forward. Licencing may be the way Race monetise Zantrene. In this case it maybe a longer burn for SHs but with annuity income and never a need to sell. Time then to set up a perpetual trust.
GLTAH
RAC Price at posting:
$2.00 Sentiment: Hold Disclosure: Held
(20min delay)