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

To: mts362 who wrote (877)	4/18/2000 8:02:00 PM
From: david james	Read Replies (1) \| Respond to of 1298

I don't think I understand your point. CEGE has made (so far) a $190 mill profit on the sale of their antibody technology. They have no choice as to whether this gets registered as earnings. It is required. CEGE will have a P/E under 10 next week unless the stock gets to over $40 or so by then. If CEGE cashes out another $100 mill next year, they will need to record another $3/share gain towards the earnings. Do not confuse this with the many companies that have sold their own stock to raise capital. The CEGE gain is quite different and results in no dilution. The second question is whether the street considers these profits the same as those they get from the day to day revenues. No, CEGE is not likely to go run to a P/E of 50 in the near future ($200/share) because of these profits. But at least CEGE will be on the top of the earnings lists and will have the lowest P/E in biotech, and that may well get a lot of investors to give it a closer look. At least getting back to $30 shouldn't be too hard with their hard assets already worth more than $20. Dave