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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (24467)	12/19/1999 2:48:00 PM
From: Mike McFarland	Respond to of 56532

I thank you for that feedback. To blame them and not the company for the subsequent decline in price is a mistake IMO Too slowly I came around to that conclusion--it has been hard for me to accept that Ariad management could peice together an amazing work of molecular biologic engineering (ARGENT) and yet fall into such huge financial traps. The damage seems to have been undone, and it continues to be one of my larger positions. While I've got you on the line...I've done fairly well in small and microcap biotech this past year, and I think this sector still has quite a lot of catching up to do over the next few years--but what do you think about biotech valuations, specifically these smaller platform companies--M&A activity has not been what I'd have expected by now. For example, ARIA is trading for book value--the platform itself apparently has no value in the eyes of the market, that's crazy. You can find a number of biotechs that trade as if they have no technology value, the patents, the IP, it is all valued at zero, I don't quite get it. Also, if the I-net bubble pops, could you see biotech taking it in the shorts? I am comfortable with my current holdings--I think I could lose 30% in a general market correction and not blink, but if you have any opinions about what the least expensive sectors in this market are I'd be grateful. FWIW I'm trading with mad money, nothing more than my IRA contributions has ever come out of my pocket for this hobby--but I'm getting closer to the point where my account balance looks like real money and I feel an increasing desire to watch for booby traps.