Today's WSJ has an article about the Pros vs Darts. At least someone likes Agouron. They chose the two top investors of the most recent competition and one, Richard Wiggins of Investors Management Services, has picked Agouron as his choice for this new contest. His last pick was Boston Scientific Corp. Although the darts won over the pros in the latest round, they are ahead of chance and the Dow since 1990. Thank goodness.
"For his second battle with the darts, Mr. Wiggins is going with Agouron Pharmaceuticals Inc., a La Jolla, Calif., biotechnology concern whose first major product is being used in the treatment of the human immunodeficiency virus, which causes AIDS. The drug, Viracept, is expected to add $300 million to the company's revenue this year, bringing the total to about $450 million in the fiscal year ending June 30, up from $132 million in fiscal '97, he says.
The company's growth prospects are "quite exciting," Mr. Wiggins says, though "there's always the risk of someone else coming up with a competing product," and biotech stocks can swing as drugs brave the approval process. Agouron closed on the Nasdaq Stock Market at $34.875, down $1.50 from Tuesday's close and down from a 12-month high of $56.50 last fall."
Bill, I'm not sure what you are trying to say, but there was one individual, who was short Agouron, who first came on this thread in April of 1996 implying the insiders knew something and so were selling. That was a year before Viracept was approved. They must have known something, right.. There has been selling on a regular basis here for years. There have been so many discussions of this issue on this thread, ad nauseum and I think these accusations, if that is what they are, should be reserved for companies like Bre-x, or Mercury Financial.
Options are used as incentives and bonuses etc. I'd take some profits too or diversify. I think they deserve it. And it's not like they sell out, only a small part. I believe these options expire worthless after awhile and new ones are granted.
I don't know if the new tax laws have changed this but there was an article in the WSJ about two years ago, showing how companies like Microsoft and Intel and GE paid from 20% to 30% less taxes because of these options that have been converted, as they are deductible when they are converted.
Most say that insider selling is meaningless and that only Insider Buying is significant, but an article in Barons this past weekend tried to dispel even this by showing how management sometimes makes token purchases to make it look like there is some good news coming and then drops a bombshell. Michael Dell sells. He must know something. That's what the press implied. I'd say he knows how to run that company like everyone else would like to ... |
