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Biotech / Medical : Incyte (INCY)
INCY 100.88-1.7%Feb 3 3:59 PM EST

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To: chirodoc who wrote (481)10/4/1997 3:07:00 PM
From: shdu   of 3202
 
Last Q incyte made 1.9 million on earnings. 1.9x4=7 million/year. current valuation of Incyte is 1,000+ million. So you pay 1000 dollars to buy 7 dollars of earnings. Would you lend someone 1000 dollars if he promises you to earn you 7 dollars per year? He implies that there is 90% chance to earn 90% more per year on that 7 dollar he earns in the first year. He also promises that he will pay you part of that 7 dollars if he gets too much cash in his pocket, and when he feels like it, which maybe 5 or 10 years down the road. Buying stock is like grocery shopping, you get the best price for the same thing on sale, or better yet, fire sale.

Sam

<<<<<1000 dollars to buy 6 dollars of earnings...?

are you referring to hgsi? (which i sold to get into incy).

don't really understand this response.......
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