Author Topic: TRGT - Targacept  (Read 5310 times)

Mephistopheles

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Re: TRGT - Targacept
« Reply #10 on: April 08, 2012, 11:59:30 AM »
I have a small position in this, but am a bit skeptical. How significant is the fact that it's trading below cash? It's not like they're going to do a buyback or pay a dividend any time in the near future. And given that it's a biotech without a drug on the market yet, it's very feasible that they won't get any results from the pipeline and end up burning through the cash, right? Also, even though Seth Klarman owns 17%, it's a miniscule position in his portfolio, so I'm not sure we can rely on that.

I'm not a biotech expert either, so for those of you who are, what generally happens in these cases? Is it normal for a biotech trading net of cash to be taken out? Or do they generally burn away their cash hoard until they exist no more?


17thstcapital

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Re: TRGT - Targacept
« Reply #11 on: April 09, 2012, 01:47:25 PM »
With about the best large shareholder one could have! (Klarman)

Looks like he punted his entire position.....

stahleyp

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Paul

berkshiremystery

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Re: TRGT - Targacept
« Reply #13 on: April 10, 2012, 10:16:23 AM »
Targacept reports an error in asthma study,...shares are down almost ~12% to $4.23 per share.

Baupost has sold off their entire stake in TRGT according to SEC files.

I never understood what Seth Klarman liked about Targacept.
« Last Edit: April 10, 2012, 10:25:50 AM by berkshiremystery »

theantilibrary

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Re: TRGT - Targacept
« Reply #14 on: April 17, 2012, 10:02:40 PM »
Certainly wish I'd waited a day to write this one up, but it still looks very cheap selling at about 65% of cash.

Targacept article in Barron's today:

http://online.barrons.com/article/SB50001424053111903835404577350180572736636.html?mod=BOL_hpp_highlight_top

nodnub

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Re: TRGT - Targacept
« Reply #15 on: April 17, 2012, 11:52:20 PM »
Baupost dances in and out of lots of small biotech, SPACs, and special situations.  I wouldn't recommend trying to ride their tailcoat on these unless you have brass balls.

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The obvious exception to this advice is if you are willing to out-read and out-research the rest of the world on each company so you know more about it than anyone else.