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Biotech / Medical : LSBC -- Large Scale Biology Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Lone Star who wrote (24)	4/23/2001 11:34:54 AM
From: scaram(o)uche	Respond to of 144

Insight..... perhaps, but it's still just guessing. When one sees a company with so much absolute value vested in research dip below a valuation that is equivalent to cash-in-hand, it usually spells profit. It's worth the "guessing". Biotech IPOs are not the creatures of old. They're structured to come to market with a higher number (and, often, percentage) of shares held by insiders. Insiders can generally sell at low share prices, if forced to do such, and still tuck away a decent profit. Insiders are "locked up" for six months (general rule, not a given) following an IPO. LSBC went public in August, "unlocking" into low demand. Sector liquidity is low..... demand for biotech shares is very low. "Lockup hell"....... lots of shares available, low demand. One other factor that can be added...... lots of those shares are held by bench jockeys, investors who often have lots of greed/fear and relatively little investing experience. I'm assuming, given the timing of a very public bail, that tax-related problems were also a contributing factor here.