Alternative Way To Value Lab Acquisition

Not sure Frosty's aural sensory organs are capable of deciphering the common sense solution Bill and I have discussed many times, and which he proposes here.

As far as selling BRLI, now or whenever, I hope it's a given, since even Steve Rubin acknowledged that it was a worthwhile option to consider. But, then there's that common sense restricter that seems firmly implanted into Phil's hammers, anvils, and stirrups.

But as Bill is pointing out, the need for a sale, while obvious, is only important in so far as its service to impact the cap structure. If the use of proceeds becomes only cash in the bank, or even a source simply pay off debt early, then it gets relegated just to the balance sheet. This kind of asset often gets discounted by the 'club.' On the other hand, we can pray that Phil reads Bill's post, has a final flash of trading acumen, and recasts the cap structure. That is, by purchasing the IOUs he issued in the form of stock, as currency for the asset purchases, at a discount. In doing so, he will be giving the future Ngenla and Rayaldee revenue, high margin by definition, the greatest chance of impacting the stock price, because those cash flows will then, freed of the BRLI expense millstones, have the best chance to raise the numerator in that fraction thingy over which investors obsess. Yup, the EPS.