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Biotech / Medical : Biotech Valuation
CRSP 57.89+1.8%3:15 PM EST

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To: Biomaven who started this subject11/6/2001 10:03:08 AM
From: aknahow  Read Replies (1) of 52153
 
Cash about to get trashier! Those biotech companies, that sold stock, which some investors think will be worth, at least, 100% more in five years, will now earn under 2%, per year, on the funds raised.

Far from automatically indicating value, huge cash balances will come to be seen as a sign that such companies lack worthwhile projects or at least the inability to bring products into development. Not saying this perception will be correct. Just that it will overtake the cash represents value concept.
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