Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: James Clarke who wrote (10410)	4/24/2000 3:29:00 PM
From: Michael Burry	Read Replies (1) of 78489

I think you have to start doing some work on it now. I am. Keeping in mind the earnings adjusted for options. Not much a value stock, but I should let those here that might be interested that there is a biotech stock I am about to buy - and it's not something I do often despite my knowledge of the area. It's Incyte (INCY). I had bought it before in the teens and twenties. Then it went to 289 (well after I sold). Now it's in the 60's. The thing is, they sold 2 million shares to Janus at 210 when things were high. They were one of the very few genomics concerns to get the deal done when the things were hot. Their burn rate is 30M this year, a little less next year, then back to profits after a brief hiatus. They are a real company with a growing off balance sheet intellectual property asset. There's over $20 (>$600M) in cash on the balance sheet, and the company just guaranteed itself it won't run out of cash (at Janus' expense)before their royalties start flowing. This is not easy to model, but I am getting a feel for a margin of safety. At 60 I would buy, but at 69 I'm within 15%, and I usually am ok buying a smaller position within 20% of my target. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next