|Update: For those watching NWCI and RNN|
|Friday, 16 April 2010 08:50|
Oracle will pay Phase Forward $17.00 per share in cash, the companies said on Friday, a 30 percent premium over Thursday's closing price of $13.08. Phase Forward shares jumped 29 percent to $16.89 in premarket trading.
NewCardio's technologies and vast patent portfolio alone still make it an undervalued play at these prices. The fact that more players are looking to get into the automation of clinical trials bodes very well for the company as NWCI's own pending partnership/investment deal is getting closer to reality as well.
As I reported earlier, the millions of naked shorts are starting to buy back in to RNN after the erroneous reports about the company's "failed clinical trials." In addtion, there are several milestone payments and a forward looking news item next month that continue to push the stock price higher. In the opinion of many of us who follow the company, RNN is a $15 stock waiting to happen.
As I said in my previous article, The company has stated that they have been receiving warrant exercise money and that they now have more than $10 million in cash. Keep in mind that they will also be receiving $3.5 million from Teva in June in a further private placement at 20% above the stock's market price. This is in addition to the $4 million in milestone payments that they'll get from Teva by year end.
Don't forget, also, that next month the company will have some important Zoraxel data to present and we believe they will make a deal with one of the six interested major pharmas for Serdaxin. Sources told us that they anticipate that partnership (worst case scenario) by year's end.
Disclosure: Long NWCI, RNN