SPARTAN STOCKS 300 Exclusive “Stalking Horse” Stock Pick
Chem Rx Corp. (CHRXQ: OTC)
Hey Spartans,
Based on the information in the SEC filings by both Companies (CHRXQ; OTC) and (PMC NYSE 9.40).
Spartan Stocks 300 is issuing a short term price target of .50 to 1.00, with the details of the buy out; cash per share information expected to be released soon we expect to see the shares of this Low Floater tighten up as savvy traders move in.
Last week Monday, it was announced that CHRXQ had reached “a stalking horse” asset purchase agreement with pharmaceutical services company PharMerica Corporation (NYSE: PMC). The total value of the buyout was $70.6 million.
Here is a few facts:
- PharMerica Corporation (NYSE: PMC). PMC:NYSE 9.40 Files a SEC form 8K on September 28, 2010 to acquire the Assets from the Seller for $70,600,000 in cash plus the assumption of specified liabilities related to the Assets. TAKE ALL DEBT's!
- PharMerica Corporation (NYSE: PMC). PMC:NYSE 9.40 Files a SEC form 8K on September 28, 2010 .The Company has deposited $3,530,000 into escrow which will be credited to the purchase price on the completion of the acquisition of the Assets.Chem Rx(CHRXQ) has 13,791,866 shares on record as of August 13, 2008. With a cash offer of $70.6 million for all operations equipment, employees, with all debt being acquired PharMerica, that’s a Cash offer.
- CHRXQ, headquartered in Long Beach, NY, is the third largest Long Term Care pharmacy in the U.S., and is family operated. CHRXQ currently services all of New York State, New Jersey, Pennsylvania, Florida and Illinois.
- CHRXQ is a huge company that’s been around for more than 40 years and services multiple industries - prescription and non-prescription drugs, intravenous medications, durable medical equipment items and surgical supplies - for more than 67,000 residents.
Key points
- Sales price per share details have not yet been released, but when you see words like “stalking horse”, and see a series of SEC forms being filed by both companies it sets off radars. We started digging and everything mentioned here is taken from both of the company’s most recent SEC filings. See links below.
- We find it very interested that the only thing not mentioned is the sale price in relation to shares, with a $70.6 million dollar offer, and with zero debt obligations at 13.7Million shares, we did the Math and our eyes got huge too$$$$.
- To clarify, “a stalking horse” asset purchase agreement refers to an attempt by CHRXQ to test the market in advance of a court-approved auction. The intent is to maximize the value of its assets as part of, or before a bankruptcy court-approved auction process.
- We believe ChemRx (CHRXQ) management is attempting to make a swift move here to maximize the value of its assets to obtain a higher buyout offer per share!!
This could be the biggest play of the year!
~Spartan~
