You asked me the same question... let me get back to you
now. I worry a lot about ABSC... they may be near a bottom but
I don't see much upside until the next module is delivered,
probably sometime next year. There may be a screening deal or two
before then but Wall Street is not placing a lot of value on
deals right now, unless they are biggies.
What do I like... well, I like PCOP. These guys just got crushed,
partly in sympathy with ARQL but also because of their recent
merger with Molecular Simulations. These guys have a very good
combichem program, a UHTS system that is nearly operational, and
some internal discovery programs that appear to be progressing
nicely. They seem cheap at $13-14.
I also like Ariad (ARIA). I think if their regulated gene therapy
system is going to work in humans, we should find out in the next year
or so. They have internal programs which are progressing slowly but
should result in an additional partnership this year. I've heard
that the HMR/Ariad genomics center is off to a very good start so
that may very well add additional fuel to stock appreciation.
ARQL seems cheap but I haven't accounted for the delayed revenue
that Mike King discussed in his recent downgrade. I haven't sorted
all that out yet but as a long term holding it seems pretty solid.
I think MLNM is very attractive here but I have not done proper DD
on this one yet. MCDE seems like a good bet but their programs have
been progressing a bit slower than I expected. Neuro stocks look
really cheap, I think SIBI is one of the better looking prospects
out of this group. Neuro is way out of my league though, so I
can't profess to have done true DD on many of these.
It's hard to be bullish on any biotech... seems like they are trending
to $0 for the most part.But I can't believe that these companies,
even if they are years away from profits, have no value. I own
many of those mentioned above and consider them long-term investments.
I currently have about 15% of my portfolio in biotech and may increase
that if this bloodbath continues.
I hope this helps. As always, please investigate for yourself as I
am not qualified to give investment advice.
Take care,
John |
