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Biotech / Medical : Diversa Corporation (DVSA)

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To: nigel bates who wrote (137)6/13/2007 5:40:17 PM
From: A.J. Mullen  Read Replies (1) of 144
 
I liked the idea of using enzyme technolgy to get ethanol from cellulose. I bought in January, and the shares have lost half their value in half a year.

I spent sometime this afternoon looking to see whether I should double down or spread the risk by buying other companies. There's no shortage of competition, investincellulosicethanol.com.

In healthcare it might be worth backing several horses because each candidate will likely find a niche, which is then protected by patent laws. This is less likely with industrial enzymes. There are probably a plethora of potential solutions, and several may not vary much in their overall efficiency so the business could end up being a commodity.

Having said that, Kholsa Ventures has stakes in more than one company. They must think their products will be able to differentiate themselves.
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