May. 5 at 5:51 PM
$TBPH The company is expected to report tomorrow. The analysts expect 9 cents per share, normalized. I agree that that is a reasonable estimate. On the basis of the likely report tomorrow, the stock is fairly priced at
$16 to
$17. However, the data being reported is only a transitional state of finance while they execute their staff wind down. Once completed, the continuing operational state of the company is worth
$22 per share. In an actual sale, the company is worth over
$30 per share. I wrote the IR people and told them that they should simply set up the provision for the staff wind down costs as a liability. Then, the analysts would value the company on the resultant, terminal P&L. The analysts do report a price target of
$22, which is correct, absent a take out. I doubt that the company will do this, although I believe that it would be wise. We will see soon. I am holding long for the take out that I expect.
