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

To: A.J. Mullen who wrote (735)	2/29/2000 10:46:00 PM
From: jeffbas	Respond to of 52153

AJ, I agree that your strategy as a conservative approach to dealing with not being able to value some stocks. On the other hand, I have a truly significant amount of money in XICO, know the semiconductor industry pretty well, and know exactly where I would start feeling uncomfortable. Rather than using your approach, I was hoping there would be folks around who know the biotech industry well and could advise what valuation would be ludicrous for GZMO relative to the most similar peers.

To: A.J. Mullen who wrote (735)	2/29/2000 10:49:00 PM
From: John Metcalf	Respond to of 52153

I don't know how to value these stocks either, so I look at relative valuations. Today, AMEX Biotech Index (^BTK) hit another all-time record high. This is the eleventh record so far in 2000, and record highs have occurred on 27.5% of the trading days so far this year. For the sake of perspective, here are some tallies of record highs from previous years. Of course, "perspective" is only a trick by which illusionists render whole/part relationships by painting things which are close VERY LARGE. year new highs 1992 5 1993 0 1994 0 1995 0 1996 0 1997 0 1998 0 1999 22 2000 11 After you live through the famine, a little bit feels pretty good, eh?