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Biotech / Medical : Biotech for less than a buck. -- Ignore unavailable to you. Want to Upgrade?

To: nigel bates who wrote (581)	7/29/2000 12:33:46 PM
From: RWReeves	Respond to of 743

Current musings: VVUS looking cheap on improving news, such as Nigel's post. Last I looked they have over a buck a share in cash and a pretty decent pipeline and approval record. Not the Viagra II many had hoped for (nor was the ill fated ZONA meteor/crater) but a niche (don't even go there) market that should yield a decent revenue stream. Bound to get acquired sooner or later as a pharma sales force could really use this as a door opener extension for a urology/diabetology call audience. I've ranted on this before, so just a reminder. Bought more on Friday, target 10 bucks. CALP discussed elsewhere. Odd price patterns on this one, 2 wacking good news events (lawsuit and MLNM pump) layered on a general rout. So far I have surfed the wave 100%: long deep covered call with short term put insurance closed Friday. Now if CALP turns around and goes back up I would be grateful. If not, you can share my pain. WHich won't be much pain with a price basis in the low 40's or high 30's and two current analyst recommendations targeting 81 and 153 bucks o' share. MUch to nibble in the current drought, no I don't think the rally is over. Too many products hitting the market and generating revs to ignore (e.g. QLTI, CORR) Lots more WELL managed companies out there than before. Interest rates. Had an interesting discussion with a CFO last week. We kind of laughed that Biotech never gets a cost of capital anywhere near something the Fed controls. Generally its a fair amount higher and anticipates greater risk/returns. So rates could go up a lot and have little effect on BT spending or results. Look at your own account. If you had to pay double the rate now for your margin flyers would it make ANY difference? Not if you hang around SI it shouldn't. BT investors should think about this before selling off on rate fears. Only takes a few lemmings... Lots of stuff on sale this week. More later.... baby calls. RWR