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

To: Scott H. Davis who wrote (2433)	1/2/2001 9:45:00 AM
From: Biomaven	Respond to of 52153

Scott, I think the cash issue is less significant than it was three or four years back at the depths of the funding valley, when companies were resorting to floorless convertibles and the like. I think the "don't invest in companies with less than x years of cash" is yesterday's dogma. If a company has decent science and prospects they can now get the money, perhaps at a modest discount. Acqua Wellington and their affiliate have been important here. Further, given there are many biotechs flush with big cash, any good science company with no cash will likely get munched. (Note the biotechs don't care about the impact on quarterly earnings). Thus in the short term if this is correct, perhaps the cash-poor good science companies will prove a better bet than the cash-rich ones. Perhaps the best argument for avoiding cash-poor companies is that they likely have dumb CFO's that missed the best funding window ever. <g> Peter