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Biotech / Medical : VD's Model Portfolio & Discussion Thread

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To: lwd who wrote (5094)6/10/1998 2:01:00 PM
From: Vector1  Read Replies (2) of 9719
 
<< Does the following press release from GENZL change your view of the stock or company? Does this type of internal financing improve the scenario?>>

Yes. It confirms Genzyme's commitment to the business. The company is not going to run out of money and is not going to be forced to issue a death spiral preferred. GENZ was able to do this with money borrowed at 5 1/4 % convertable at over a 50% premium to the current stock price so its a good deal for them as well. The key will be the continuation of sequential growth quarter to quarter in revs. If they can't keep the 30% pace i would sell. If they can its worth holding on. The Diacrin JV is a lottery ticket.
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