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Strategies & Market Trends : Value Investing

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To: cpabobp who wrote (17219)6/12/2003 10:17:27 AM
From: Spekulatius   of 78742
 
RE: VICL or any other "below cash" stocks

While I agree that investing in biotechs below cash may represent a safety net I still think that you need to look at the underlying technology and the chance of success. With biotechs, the cash will be spend sooner or later and if the R&D is wasted on unpromising projects the company will be out of business. As for VICL, I do not like their ?naked DNA technique ; their progress in the clinic is very slow and it is quite questionable if ever anything will be marketable. The only silverlining is a HIV project with Merck which uses their technique as part of the cocktail but i doubt that the small royalties will be sufficient to sustain VICL if this project will be successful.
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