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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (417)	6/11/1999 11:29:00 AM
From: Biomaven	Read Replies (2) \| Respond to of 3158

David, The problem is that many of these companies are a fair way from having products on the market. Thus any mis-valuation by the market can easily persist for years. I agree however that biotechs can be more easily mis-valued than most other stocks, and this can obviously provide an opportunity for investors who are both right in their views on a company and confident enough to know that the market is not always right. The gap in valuation between the big caps and the small caps is obviously not unique to biotech - it has been a dominant feature of the overall market for years now. The question for biotechs is whether 1/4 + 1/4 ever equals more than 1/2. Can the lower tiers be rescued by horizontal mergers? Right now this is still an open question. Peter