Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: TRIIBoy who wrote (1407)	6/18/1999 10:53:00 AM
From: Michael	Read Replies (1) \| Respond to of 10293

When is CPU going to become a good short play? Seems like cpu is lost, management has no focus. When officers start quitting will you then sell, Bill? How many distress signals does cpu have to give you, before you bolt, sure is a nice day Michael QCOM setting new highs now 40% of my portfolio My free loan(from not covering Zit short)due to irs when i cover Is now up again, this is too easy:))))))

To: TRIIBoy who wrote (1407)	6/18/1999 1:42:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 10293

I would start reshorting if the price peeks above 8 1/2 and short very aggressively if it hits 10 again. At these levels (6 - 8) I remain neutral.

To: TRIIBoy who wrote (1407)	6/18/1999 4:54:00 PM
From: Q.	Read Replies (1) \| Respond to of 10293

Based on valuation, I would short MCHM anywhere north of $4. There are 22 M shares outstanding, so at the present stock price of $8, the market cap is about $170 M. To value the stock, you can compare to the R&D expenses, since this is a development-stage biopharmaceutical company. From the 10k: "Research and developmental expenditures approximated $4,318,800, $2,084,800 and $1,736,600 during the years ended December 31, 1998, 1997 and 1996." Hey, that's not very much R&D expenses, for an R&D company. So, that means that at $170 M market cap, you are paying 41X the current run-rate for R&D, and 63X the average for the last 3 years. R&D companies have price/R&D multiples that are all over the map, but 41 and 63 are definitely at the high end. That's for a company that has a product that in my opinion has little promise. (They sell a cream, which is supposed to be used with a vibrator to give some, but not all, males an erection.) They have $1 per share of cash, so that could put a floor on the stock price.