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

To: Biomaven who wrote (418)	6/11/1999 11:53:00 AM
From: aknahow	Read Replies (1) \| Respond to of 3158

Pete, IMO 1/4 + 1/4 = 7/16 or less. Any merger produces additional expense and uncertainty. Which products will get shelved? People will begin to protect their turf and they do that in part by pushing what they are involved with even less objectivity than normal. While a large strong company can absorb this and consider it as a price paid for future progress I don't see how small weaker biotechs can.

To: Biomaven who wrote (418)	6/11/1999 12:00:00 PM
From: LLCF	Read Replies (1) \| Respond to of 3158

<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.> yes, no doubt! However theoretically long dated IRR with no reinvestment risk has an important spot in any portfolio. In fact IMO anyone with a time frame of less than a couple of years is speculating if he/she's buying stocks. <confident enough to know that the market is not always right..> No problem there, this weeks "BioCentury" shows a glaring market "inefficiency"... that of GNE... trading above the strike... show that to the efficient market folks! ha <The gap in valuation between the big caps and the small caps> I don't have a problem with my biotechs trading at 1/2 of the market's PE in $5 years if they're making money... I will have made many times my money and WAY outperfomed the S&P. If this proves to be un-true than the market will have been more efficient than I thought! <dominant feature of the overall market for years now.. [large cap outperformance]> Yes, it's amazing isn't it??? Any idea what % of new money coming into the market goes into "index funds"???? This is one of the things creating the opportunity in small caps, hence biotech. A large portion of the money flowing into the market goes into the S&P without any thought to what is being purchased. DAK