MSB followers who like to conduct thorough and ongoing research on all aspects of the company might find instructive the following Bloomberg interview with Jim Chanos, following his presentation to a hedge fund conference in the US yesterday.
The first 4 minutes and 30 seconds is about MSB's prospective partner, Mallinckrodt.
He is obviously talking to his book, but I thought the following part of the interview was interesting (from around the 4:00:00 minute):
Interviewer: What's Mallinckrodt worth?
Chanos: There's eight billion of debt here and the operating income over the most recent quarter, annualised, is under three hundred million dollars, so...
Interviewer: So put a value on it.
Chanos: Well, I think the debt's not worth a hundred cents in the dollar, so what does that tell you about the stock?
Interviewer: It's a zero?
Chanos: Yes, we think its a zero. If Acthar goes the way we think it will, then the stock is worth nothing.
Gee, and I thought my assessment of Mallinckrodt was reserved.
MSB Price at posting:
$2.39 Sentiment: None Disclosure: Not Held
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(20min delay)