IMO Collagen's biggest strength isn't its processed steer skin, it is in its ability to incubate and spin off successful companies. In the case of LipoMatrix, they spun it off and then when the product was ready were able to buy the company back for a fraction of its value. I'm close to the two first Lipo employees who did most of the early legwork developing the product. They were forced to sell back their stock early and cheap. Good for CGEN, quick liquidity for my friends, but at a low valuation. CGENs biggest asset is the 1.3 million shares of TGET (another spinoff) they still hold worth $95 Mil or so and the product pipeline which has some near term products. I just hope the management can capitalize on it. Why I'm investing in a breast augmentation company though I just don't know, I'm more of a leg and ass man myself, but I'm looking for stocks at or below their book value (check out MATX too) with near term product revenue, or in rare cases like CGEN who are actually profitable. They pay a dividend to boot (isn't there some rule against biotechs paying dividends, profits could ruin this industries reputation). An informed friend thinks that some of the scorn on CGEN comes from Howard's over-hyping the company over anything and everything - and he cried wolf too many times, so nothing is believable. I'll be quite honest in that I only considered this company after Howard retired from active day-to-day involvement. It's tough to get human collagen donors I would imagine, I hope they can figure out a way to get it closer. Here's a joke that seems relevant.
WARNING: IF YOU ARE EASILY OFFENDED HIT NEXT NOW!
MIRACLE BRA ALTERNATIVE
A husband, tired of his wife asking him how she looks, buys her a full
length mirror. This does little to help, as now she just stands in front
of the mirror, looking at herself, asking him how she looks.
One day, fresh out of the shower, she is yet again in front of the
mirror, now complaining that her breasts are too small.
Uncharacteristically, the husband comes up with a suggestion. "If you
want your breasts to grow, then every day take a piece of toilet paper,
and rub it between your breasts for a few seconds."
Willing to try anything, the wife fetches a piece of toilet paper, and
stands in front of the mirror, rubbing it between her breasts.
"How long will this take?" she asks.
"They'll grow larger over a period of years," he replies.
The wife stops. "Why do you think rubbing a piece of toilet paper between
my breasts everyday will make my breasts grow over the years?" she asks.
The husband shrugs. "Why not, it worked for your ass, didn't it?"
Later, Dave. |
