Biotech for less than cash value 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.

Biotech / Medical : Biotech for less than cash value

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Night Trader who wrote (47)	6/5/2002 10:43:21 PM
From: Czechsinthemail	Read Replies (1) of 684

One of the issues with CTIC is the large number of trials they have in process. That makes for a high burn rate that erodes cash levels quickly. Particularly in an environment in which raising more cash is likely to be problematic, having a more modest burn rate relative to the net asset value is attractive and more likely to linger. TTP for example, it is trading near its net cash, has drugs in advanced trials and a low burn rate. No guarantee that things will pan out, but the likelihood of preserving cash while they try to get approvals is greater. Another problem with CTIC is that apparently they are wanting the FDA to sign off on an unorthodox standard for their trials. It may come through as a winner, but the more I looked the riskier it seemed. I think looking at the net cash value and the relationship of the burn rate to that value is important particularly in an investment climate where there seems to be no limit to the willingness to dump shares at progressively lower prices. Science is too intangible for most to evaluate, so cash and asset levels are more likely to get attention -- at least until there is greater optimism about future prospects.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next