ibpi.pk

**zhao_xing** Thu Feb 09, 2006 4:23 pm

ibpi.pk
hi blasti,
How do you think of ibpi.pk?

The company failed its business and will close and liquidate soon.

I checked their last 10Q(Jun 05). They have 48.2m cash or cash equivalents.

Here is my calculation for liquidation value.

NCAV=48.2 - 3m (prefered stock value) + 1.5m (proceeds from execising warrants) /(9(common shares)+2(from warrant execising)=11.1 m shares)=4.2 dollars/ share.

IBPI currently is traded at 3.5/share.

So I think that's 20% gain without risk.

The only uncertainty is IBPI is involved in some class action lawsuits, I just don't know how much it will pay to lawsuites (but I think insurance mayl cover some).

Also, if liquidation time frame lasts too long, 20% gain may not be impressive return.

Could you evaluate the whole situation for us?
Thanks!

**zhao_xing** Thu Feb 09, 2006 4:28 pm

How mach I need to evaluate for their management fee during the liquidation process, and will their short-term investment appreciate value?

**blast_investor** Thu Feb 09, 2006 8:05 pm

This is liquidation play.

I do not know that much of this company. Looking at your number, my feeling is that the return is attractive for consideration.

Right now the company G&A run rate is about $2 million a year, but you will need to factor in severance pay for CEOs and upper management.

Therefore, the real total return will drop into mid to low teens. If this company can get liquidated within half year, then it will be very nice return. If it drags down to 1 year or more, the return would be too small.

Have you called or studied the situation that how long liquidation process will last? SEC filing might disclose that.

**blast_investor** Thu Feb 09, 2006 8:11 pm

Most of this stock asset is in cash or short term investment, therefore, a quick liquidation less than half year is possible.

But of course, case study, and upper management severance pay needs to be studied to determine the return on this stock.

**blast_investor** Thu Feb 09, 2006 8:48 pm

Hi zhao_xing,

Here is problem I have with this stock after I read relevant SE filings. The company IntraBiotics did not announce the "liquidation" of the company. here is press release:

http://www.shareholder.com/intrabiotics/ReleaseDetail.cfm?ReleaseID=162684

It only said that active operation is stopped, and employees will be fired. The recent CEO was hired at part time basis and the board is still considering for the next move.

I can not find anywhere on this stock about "liquidation". Without liquidation event, this stock will be dead money. The discount will always be there until company announce liquidation decision.

By the way, if the board truly believes in "liquidation", it can be done in really quick time frame. This company has simple balance sheet.

**zhao_xing** Thu Feb 09, 2006 8:56 pm

Yes, they didn't declare liquidation. (that is just what I thought they have to do eventually)

I think they are waiting for some merge or acquisition possibility, but I personally feel that kind of chance for them is very small now.

Yes, you are right. time frame is critical for this kind of investment.

**zhao_xing** Thu Feb 09, 2006 9:13 pm

of course, merge or acquisition (if possible) will be a better outcome for shareholders because intangible value of the company can be saved.

The key point here to is to reach either outcome (liquidation or merge,acquisition) as soon as possible before the remaining cash is comsumed up little by little by the board.

**blast_investor** Thu Feb 09, 2006 9:44 pm

But the problem is that we do not know how large is " intangible value"?

I would only want to pay 0 dollar for intangible value of this company.

zhao_xing wrote: of course, merge or acquisition (if possible) will be a better outcome for shareholders because intangible value of the company can be saved.

The key point here to is to reach either outcome (liquidation or merge,acquisition) as soon as possible before the remaining cash is comsumed up little by little by the board.