Biotechnology Value Fund, L.P. 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 : Biotechnology Value Fund, L.P.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: scaram(o)uche who wrote (3540)	7/13/2003 1:01:10 PM
From: tuck	Read Replies (1) of 4974

Signals on the recent spate of converts and and shelfs in biotech: signalsmag.com Interesting was Dennis Purcell's (Perseus-Soros) comment about converts involving unprofitable companies: that the investors in these deals are highly likely to short the underlying stock. As opposed to deals involving large, profitable companies such as AMGN and CEPH, who can actually service the debt. Purcell doesn't mention instances in which the terms of the converts get reset to a lower conversion price, so that the institutional investors can make even more out of the deal, and with greater dilution. My favorite example of this is GERN, which has reset the terms of each and every one of its converts in this way. Their PR machine is able to get great mileage out of its preclinical accomplishments, but down the road, it's got to hurt. Cheers, Tuck

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next