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Biotech / Medical : King Pharmaceuticals, Inc. (Nasdaq:KG)(Was KING)
KG 23.52-4.6%Oct 29 3:59 PM EDT

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To: wpckr who wrote (20)5/27/1999 1:59:00 PM
From: Harold Engstrom  Read Replies (2) of 61
 
I don't like the look of the balance sheet for KING. Very low on cash, its intangible assets make up the majority of assets, its liablilities are nearly the size of the assets and consist primarily of loans, and with hard currency liabilities far outweighing cash or marketable securities the company doesn't have much flexibility to deal with potential crises.

As pharmaceutical companies go, this one looks riskier than many. What is the upside here that outweighs the risks.
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