It's in the darkest hours that you make your biggest mistakes. Don't listen to the "Engine that can't" at Yahoo! or the other boards where people complain about poor management if they don't get a triple on their money within two days of investing it. Historically, Xoma deserves to be ignored and that's what makes it such a great play. Unfortunately, as with all fundamental investing, you can end up waiting a long time for the rest of the market to become "as smart as you have been all along." Compound this with other stocks making huge gains in the same time span. Can wear one down. Having been upfront all along about Xoma being a small part of my total holdings, I happily admit to having enjoyed "no-brainer" gains in the recent market.
Hope this cheers you up a bit:
Prohost April-May 1998
Biotechnology Momentum
Prohost Club
Biotechs With No Approved Products
XOMA: (XOMA-Nasdaq) Xoma is cruising towards becoming what it would have been years ago if not for the unfortunate tragedy in 1992 when its very well developed product faced a rejection caused by many factors unrelated to the product's safety or efficacy. The firm's products derived from BPI are extremely promising for curing bacterial and fungal infections and sepsis. Our excitement about Neuprex, however, stems from the fact that this product is not intended to be an antibiotic but rather an adjuvant that will boost antibiotics to conquer those nasty resistant microbial strains mid reverse the symptoms of life threatening sepsis. Why this enthusiasm? Because if proven successful, the product will be used with all antibiotics in most, if not all, cases where infection begins to express the slightest signs of resistance to any antibiotics.
Moreover, the product is turning out to be important in emergency medicine. In this domain, physicians do not ask the resistant insurance companies what they should or should not administer to patients in order to save their lives. Rather, they listen to the stubborn microbes to figure out a way to destroy them.
Xoma. is doing a good job also in proving its technology and licensing it to companies, generating quick bucks. Its product anti-CD11a, developed jointly with Genentech, has shown encouraging preliminary results. If proven successful, this product could become a best seller. Psoriasis is a hot target and the number of patients is large.
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