Hi all - while we are waiting for CEGE 2nd coming, I may as well weigh in :). I tend to agree with mts, one-time gains [and losses] are not the most salient feature. In fact, I would go so far as to point out cash is not either in the biotech sector [I did hold a biotech a number of years ago who cash was higher than its share price - and it wasn't burning anything!]
However, having said that, the lack of cash is a big negative factor! So is a lousy balance sheet. So, from the perspective, CEGE is out of harm's way for the time being. Also, from the competitive position, she is having a leg up on others, competitors or not.
Now, the real issue I think is CEGE technologies, patents and pipelines. I think all of them are of potentials. Her business model of burning other people's cash --- ahem, partnership with deep pockets --- is a good one. Less risk, more reward. What's not to like?
So people ask, why CEGE is droping? Well, biotech sector is pretty ice cold. Anytime it shows some life, some external factors like a general market swoon yesterday wreck it down again. Can you blame people looking for safety? If I weren't invested in CEGE, I probably would try to park my money too! Also, considering the meteoric rise of the sector, those who have invested in CEGE when she was in the low single digit probably would want to take profit. If I were them, I would too!
However, after all said and done, CEGE potentials of multiple homeruns in her technologies, patents and pipelines will give her investors the proper due
JMHO
best, Bosco |
