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.

Biotech / Medical : Neotherapuetics possibly has a breakthrough drug - NEOT -- Ignore unavailable to you. Want to Upgrade?

To: Marty who wrote (25)	8/18/1999 5:12:00 PM
From: Gerald Underwood	Read Replies (2) \| Respond to of 204

Marty, While you have made many well thought out points, the fact remains that this is still only a temporary blip on the radar screen. The stock just barely dipped below it's 250 day moving average and is now back above that point already. My thinking on what may well have happened is that NEOT may still considered by many to be speculative, although less so than a year ago as you correctly point out. In this context a public offering could well be perceived as dilutive, since it apparently is going to be used to purchase future R&D and R&D is generally only considered to be an asset when it has been accomplished with a successful result that can only be measured on how well it has achieved progress towards the ultimate goal. Until that successful result, R&D may well be only considered as an expense. So, that being said, the company is now at a strategically beneficial point in it's development. It managed to sell 1 million shares at only slightly less than it's 250 day moving average. This is a fair accomplishment in itself. It also has capital reserves to carry it through it's next round of trials and last but not least it has gained a lot of leverage to negotiate an excellent deal with that big pharma down the road. All of this it seems to me is of excellent value to it's long term business plan as well as to it's long term stockholders. Best, Gerry