Steve,
I suggest you read Robert's post #1461,
Message 4231819, and my
post 1462, Message 4233841,
for information about the relationships between Larry
Feinberg (Oracle Partners), Jack Shuller, and Andre de Bruin.
The following transactions were reported in EXHIBIT A of the
Schedule 13D filed on 4 August 1998:
Number of
Trade Date Shares Purchased Price Per Share Value
9/30/97 45,000 $5.01 $225,450
12/31/97 50,000 3.55 177,500
5/8/98 25,000 3.3875 84,688
6/26/98 82,000 3.1908 261,146
7/1/98 2,000 3.141 6,282
7/17/98 60,000 3.50 210,000
7/20/98 10,000 3.50 35,000
7/21/98 5,000 3.50 17,500
7/22/98 50,000 3.375 168,750
In Barron's 3 August 1998 Up and Down Wall Street column, "Sick
Call," this is some of what Kathryn M. Welling wrote: ""It's
lunacy, irrational." The voice on the other end of the line was
sputtering, exasperated. With reason. Larry Feinberg-the canny
and usually convivial investor whose New York City-based hedge
fund, Oracle Partners, has a well-deserved reputation for
generating fat returns -- guessed early on, he says, that
millennial appeal would propel 1998's hottest stocks. The 'Net
was a cinch, Larry suspected. But he placed his big bets in
biotech. A group, alas, which remains mired in the dismal
underperformance that's dogged it ever since the end of '91.
His reasons were perfectly rational. "Unlike Internet plays,
biotech products are protected with patents with 17-year lives;
the barriers to entry are much higher. The gross margins are
higher. If I look at an Amazon.com with 25% gross margins and at
a biotech with 90% or 95% gross margins on a proprietary drug,
one is inherently more attractive to me." Especially if the one
in question is a major pharmaceutical house flush with a
currency selling at 20 times operating cash flow and 40 times
earnings, not to mention a marketing infrastructure hungry for
fresh product.
But instead of seeing it his way, Larry grouses, investors have
"perversely" persisted in penalizing biotechs that have
graduated to producing products and profits, rather than mere
promises."
Interesting ha? Here's Larry Feinberg, who I'd assume to be
Andre de Bruin's friend, recently buying more Quidel stock for
Oracle. I agree with what Robert said in the previous post:
"I'm sure he doesn't anticipate Qdel will stay in the $3-3.25
range forever."
Mike |
