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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (261)	7/2/1999 2:27:00 PM
From: David Howe	Respond to of 52153

Thanks, I actually figured that out moments after my post. Went back and edited my post in an attempt to save myself from embarrassment. You're too fast. Dave

To: scaram(o)uche who wrote (261)	7/13/1999 12:23:00 AM
From: Spekulatius	Read Replies (3) \| Respond to of 52153

I remember the high expectations in Seprafilm,since I held GENZ in 96/97. Seprafilm was supposed to grow into a major product and they bought into the surgical sector Deknatel Snowden (or similar) for about 250 M$ just to gain access to distribution channels for Seprafilm! The product has been a major failure and the surgical sector turned out to be tough business. The Deknatel/Seprafilm combo is now valued at 65M$. I am sure Genz did not like the high goodwill amortization costs for Deknatel. They are very smart and try to remove costly R&D and ailing businesses from the balance sheet to make earnings appear good and bolster the stock price. If the R&D turns out to be successful, they still can by back the stock or even better licence in. How many choices does a cash starved satellite company really have - if they cannot look out for a takeover partner? GZSP is looking really cheap but only because investors have figured out the game. Buying 1$ for .40c is really attractive since GZSP has a solid cash generating power. Amortization charges are non cash and subsequently do not affect cash flow. Anyway,just my 2c, I prefer to invest in a company that controls its own destiny,I am long on GLIA (as well as you are) and think this will be the better investment.