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Sold Myrexis (MYRX)

December 11, 2012

I know. I know. I said I was contemplating doubling down on Myrexis at $2.75 a share just a month ago, and here I go selling out! Well, the shares drifted up to $2.79 and the company revised the initial payout range downward in the preliminary proxy statement. Paying $.03 per share for a chance for up to $.19 in an initial liquidation payment, as laid out in the original press release announcing the liquidation, plus a share of something left over in three years, seemed like an interesting proposition. But paying $0.12 per share for up to $0.17 of upfront liquidation payment plus a share in what’s left over, is another matter, especially because the preliminary proxy gives no hint of what the ‘something left over’ might actually be worth. The other consideration is that I can take the capital loss this year and potentially get back into the deal if the share price trends down or more information is provided in the definitive proxy. I must admit that a good part of the impetus to sell was due to the fact that I couldn’t quite figure out if I would have to wait the full three years until the final liquidation payment to take the capital loss (a bit lazy on my part).

In any case, the position is now sold, though I will continue to monitor the MYRX share price to see if a suitable opportunity arises to reenter the position with a new investment thesis.

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From → Positions Closed

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