Incyte (INCY) Message Board

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Biotech / Medical : Incyte (INCY)

INCY 101.30

-2.5%

Nov 19 3:59 PM EST

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To: Vector1 who wrote (708)	8/18/1998 2:45:00 AM
From: Richard Huth	Read Replies (1) of 3202

With the acquisition of Hexagen and the creating of Incyte Genomics is on a good way in the long run. But I am not that confident for Incyte within the next month. Incyte is becoming the typical (and actually not very much appreciated) biotech company with no profits for the next years, big cash demand and expected further dilution of shares (= future earnings). Especially the capital demand and the will to offer new shares will add pressure on the stock. In this case I see the stock dividend to investors as kind of sedative pill with some side effects. It will lead to a further dilution of stock price, without any real advantage for stockholders. Incyte is not that expensive (optically) that management should bring down the price to attract more investors. It will just be the opposite. Stock dividend and the new shares together with turning negative will could bring the price down to levels, where investors get careful. Biotechs with prices under $10 are performing really poorly. INCY should be aware of that phenomenon. Even if I am very positive for Incyte's future, in the short run I am starting to get short. Happy for any good ideas about INCY next month to come, Richard

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