Comments on: Facet Biotech Corporation (NASDAQ: FACT)

By: Preserving Value: The Case for Voluntary Liquidation «

Preserving Value: The Case for Voluntary Liquidation « — Mon, 18 Jan 2010 04:02:00 +0000

[...] Opportunities we have highlighted in the past such as VNDA (900% return), SOAP (88% return), and FACT (100% return) have all been sub-liquidation [...]

By: Biogen offers $356M for Facet Biotech; FACT Surges 74%, and Position is Exited «

Mon, 07 Sep 2009 04:33:51 +0000

[...] last April, noting that the company was then trading at 46% of its net cash value (see article here). The big winner of FACT’s offer is Seth Klarman at Baupost Group, who doubled his stake in the [...]

By: ValueHuntr

ValueHuntr — Mon, 20 Apr 2009 18:54:21 +0000

Scott,

Thanks for your comment. You may be right that the company’s ability to generate cash is far more important than the liquidation value. We will keep your comment in mind for future write-ups, maybe we will also include relevant valuation based on the business potential to generate cash.

Our goal was to assess FACT from the viewpoint of its activist shareholder Mr. Roderick Wong. he has proposed the company returnd $15/share to shareholders, which essentially equates a complete liquidation of the company’s assets.

Thanks again for your suggestion, we’ll keep it in mind.

ValueHuntr

By: Scott

Scott — Sun, 19 Apr 2009 14:57:29 +0000

FACT may be a great bargain (especially given that Seth Klarman is buying), but I don’t think that it’s very realistic or helpful to use a liquidation analysis on a newly capitalized biotech company. This company was spun off and capitalized for the sole purpose of creating new drugs, which is very capital intensive. So expect them to spend the cash they have, rather than distribute to shareholders any time soon.

I think FACT’s ability to generate cash from their products is far more important than their liquidation value.