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Biotech / Medical : Cell Genesys (CEGE) -- Ignore unavailable to you. Want to Upgrade?

To: mts362 who wrote (849)	4/3/2000 7:37:00 PM
From: david james	Read Replies (2) \| Respond to of 1298

I am not sure what you call "real". Cell Genesys created a real technology which they sold in the form of ABGX. They get earnings (real cash) on any profit they made from the sale of that technology. The earnings from that sale goes straight to their P/E. And it should. Suppose the company created such technology every year, and sold it off to the street. If they could make a profit every year doing that, it should be reflected in their earnings. The cash from those earnings is just as real as selling it in terms of licensing fees or individual medicines. This is not the same as raising cash by selling your stock to the street.

To: mts362 who wrote (849)	4/4/2000 11:02:00 AM
From: AurumRabosa	Respond to of 1298

The risk-free rate is higher than 5%. For 91-day Treasurys it's now 5.873% and for 182-day it's 6.166% which would yield $15.4 million per year and that's higher than their present burn rate. However, they are not restricted to investing the cash in risk-free investments. They can buy stocks, converts or notes in companies in their own field. They could earn 12% on junk bonds, for example. I feel comfortable in knowing that they have plenty of cash to focus on their business of developing new drugs and don't have to waste time fund raising. Buying late stage candidates sounds like a good use for the cash. I'll continue to average into a bigger position on dips. publicdebt.treas.gov

To: mts362 who wrote (849)	4/5/2000 12:20:00 AM
From: rupers	Read Replies (2) \| Respond to of 1298

MTS - You're looking at the 10K for 1999 that was filed on March 30, 2000. The big sale occurred in Feb 2000 and couldn't be included as "earnings". Even though the 10K discussed the Feb 2000 sale, it wasn't considered earnings for 1999. Admittedly, the 10K is a little forboding and conservative. Gets me a little nervous when it emphasizes all the "risk factors" CEGE faces and the possibility of CEGE seeking additional financing options that could dilute shares. The large block of shares sold by David Broad, CEGE's Exec VP for marketing and development, in late March didn't help the price either. Should see significant swing up in price later this month or May (if not earlier).