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Biotech / Medical : Sepracor-Looks very promising

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To: billy d who wrote (1387)11/6/1998 6:00:00 PM
From: Biomaven   of 10280
 
billy d:

Now I realize GERN is quite far away from success and no doubt a sure thing but why do stocks like SEPR, who treat symptoms, rally so strongly when a company like GERN may have the key to solving so many problems leaving drugs which treat symptoms out in the cold? To me this is strange but then again so is this market.

I think you said it yourself when you said GERN is quite far away from success. For a company like SEPR the market doesn't really look beyond say 10 years in evaluating its worth. I very much doubt whether anything announced by GERN recently will have the slightest effect on anything that SEPR will sell over that period.

I personally exited from my few shares of GERN this morning at 19 7/8. I don't think it's a good short, however, as there is too much chance of collaborative agreements with big pharma that could boost it again, and I might re-enter on weakness.

I tend to play what I call "ENMD roulette" by laying in a small supply of shares in a few publicity-prone companies while nobody is paying any attention to them, and then selling if/when there is news. I don't confuse it with serious long-term investing (like in SEPR), though.

Peter
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