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Biotech / Medical : CGNE CALGENE

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To: Stretch who wrote (65)4/18/1997 7:46:00 PM
From: aknahow   of 76
 
Strech, at times one may feel that if the stock that has not gone down is not sold there is no loss. That is a mistake. The stock is worth its market price even if one does not sell it. Suppose the company owns 90% of the stock in another. They will offer you an exchange of stock and in fact the terms might even be a bit better than the cash offer, just to leave no hard feelings and wrap it up. But this is not guaranteed and the time delay may make any sweeter offer an illusion since you will not have your cash immediatly. It's all over and one should make a decision based on taxes and what one will do with the funds. Calgeen was a great story with great technology. Monsanto didn't screw anyone. They made a bad situation better. The lesson I learned is that the technology, even if it works must produce earnings or ones investment is at great risk.
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