I run money so I don't make public recommendations. I will tell you the private fund in which I am the general partner is 70% cash. The long positions are in gold, oil, telcom, software, and biotech. I don't hedge, short, use margin or derivatives, and my core principle of management is the preservation of capital.
I can't find plays any better than you. I do suggest that you look for companies that are seasoned, out of favor in the sense of having a long price base, are starting to come out of the base because of change in fundamentals, and have significant growth prospects. The last criterion is just your guess based on your imagination about what could be. Something has to look bad on the surface to be cheap, but cheap can stay cheap unless there is a subtle change going on.
Eventually ARQL will be in this position. They will look a lot different than they do now and you won't be getting technology seminars from them for damage control. The implementation of the science will undergo a major change. Molecular engineering is too free form now. It needs constraints derived from other disciplines. This business of needle in the haystack smells much like magic bullet cancer research. You can't hit moving targets which change shape, character, and number continuously. Even if you hit one, you don't know if the bullet will ricochet and kill you. |
