INCR comment-FYI-AXXel's Bioscience Newsletters-
INCARA PHARMACEUTICALS (NASD:INCR - $ 3.50). 52 week range another massive $.50 - 11.00. Shares O/S: 7.284 M. Market Cap: $ 28.685 M
Incara Pharmaceuticals Corporation (www.incara.com) is developing a diversified portfolio of proprietary therapies oriented to major advances in treatment of diseases afflicting large patient populations. The Company's three current programs include liver precursor cell therapy for the treatment of liver failure, an ultra-low molecular weight heparin for the treatment of inflammatory bowel disease and catalytic antioxidants for treatment of stroke and chronic bronchitis.
It is also losing money.
From the most recent quarter:
Incara reported a net loss of $2,944,000, or $.41 per share basic and diluted, for the three months ended June 30, 2000, and a net loss of $4,481,000 or $.75 per share basic and diluted for the nine months ended June 30, 2000. The nine-month period for fiscal 2000 included a one-time gain of $9,751,000 for the sale of a division in December 1999 and a noncash charge for purchase of in-process research and development of $6,664,000 incurred with the acquisition of the minority interests of two subsidiaries in March 2000. comparison, the Company reported a net loss of $4,119,000, or $.56 per share, for the three months ended June 30, 1999 and a net loss of $16,416,000 or $2.24 per share for the nine months ended June 30, 1999. As of June 30, 2000, Incara had cash and marketable securities of $8.6 million.
Chart is courtesy of www.clearstation.com
Speculative investors that think Incara is capable of staying ahead of ultimate doom can buy, of course, but those buy points had better be for trading purposes and only with risk assets. We like the fact that it did not move in concert with other stocks on the NIH announcement and that puts the stock ahead technically at the moment. We are constructive technically around the $2.30 range and neutral/negative fundamentally based only on the balance sheet. We will monitor the financial statements for improvement but that is where it stands.
Incara's take on liquidity: "Liquidity and Capital Resources
"At June 30, 2000, we had cash and cash equivalents and marketable securities of $8,644,000, an increase of $3,684,000 from September 30, 1999. Cash increased due to the receipt of $11,000,000 from the sale of IRL, offset by operating costs for the nine
months. We believe we have adequate financial resources to fund our current operations at least into calendar 2001."
Well, 2001 is about 90+ days away.
AXXel Knutson
www.TradingWeapon.com
axxel@blast.net
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