Your statements are logical. I don't disagree. But, I also think GENZ values GZMO at 7.00 a share. I base this on this statement from GENZ "Cash will be paid for fractional shares at $7.00 per share".
Don't forget I post on this board to get others opinions on my thoughts and I appreciate your input.
Now for every 1000 shares of GENZ people receive approx. 108.5 shares of GZMO. Anyway I don't expect it to rebound to 15.00 or 10.00 in the short term. If the drop is due to GENZ shareholders taking quick profit from the free shares I wouldn't be surprised to see it pop back up to 7-8, giving me a 1 1/2-2 1/2 point gain in the short term.
Now if it doesn't, that's okay to. If it drops lower in the short term I then add to my position and go long. Because I think GZMO is going to be a big winner in the long run. What makes me think this?
Genzyme Molecular Oncology is developing a new generation of cancer products, focusing on cancer vaccines and inhibitors of angiogenesis. The company has completed two phase I cancer vaccine trials in melanoma and plans to begin three additional clinical trials in melanoma, breast cancer, and ovarian cancer in the next year.
Not to mention this from the press release.
Genzyme Molecular Oncology has formed over two dozen commercial and academic collaborations since its inception in June 1997. Most recently, the company announced that it had licensed its p53 gene therapy patent rights to Schering-Plough Corporation [NYSE:SGP - news]. Under the terms of this agreement, Genzyme Molecular Oncology received a $5 million up-front payment and could receive in excess of $35 million in patent, product development and sales milestone fees, in addition to royalties on product sales. In addition to the p53 patent license, the two companies have a separate existing research and option agreement that could contribute significant revenue to Genzyme Molecular Oncology.
Genzyme Molecular Oncology has also entered into collaborations with Merck & Co., Warner-Lambert, and Bayer Corporation. The company's academic collaborators include the National Cancer Institute, the Dana Farber Cancer Institute, and the Ludwig Cancer Research Institute.
Genzyme Molecular Oncology had cash and short term investments of $8.1 million as of September 30, 1998, and has access to a $30 million equity line of credit from Genzyme General. Genzyme Molecular Oncology anticipates that these funds, in addition to revenues, will be sufficient to cover its operating costs for the next three years.
Genzyme Molecular Oncology is developing novel cancer therapeutics and diagnostics using four gene-based technologies: gene discovery, gene therapy, small-molecule drug discovery, and genetic diagnostics. A division of Genzyme Corp., Genzyme Molecular Oncology has its own common stock intended to reflect its economic value and track its performance.
I have made money on GZTC and hope to on GZMO. I have also been following GENZL closely.
Again, I love to get input from people such as you. That's how I learn. |
