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

To: scaram(o)uche who wrote (707)	6/28/2001 6:04:34 AM
From: Crossy	Respond to of 1784

Richard, thx alot for your reply. Good that you like OXIG.L. I bought it not for their biotech exposure but for their superconductivity orientation. Now I learn they cover more interesting fields. Always nice to hear that ! I was bringing up those antibody centers that NABI sold only to find out whether such units/businesses would qualify as a candidate under your "trickle" idea here. You are right that I had RGEN in mind with Protein A. That seems to be their true strength. However this flaky jumping around in their other biotech related areas is kind of disturbing to me. OTOH their burn rate is quite low. From a strategic sense I like this "balanced" portfolio approach where you got a very profitable, even growing cash-cow to "feed" your other more venture like plans. In this way the typical status of a "development stage" operation is mitigated and the whole risk of the operation to continue as a business is greatly reduced. But such an entity with "recurring lower margin biz" like RGEN must stand scrutiny to normal financial ratios then like PSR and in this respect they are pretty high in valuation. Well, if Protein A demand is surging that would be another affair.. Finally wanted to thk you for efforts to expose shaky and dangerous re-"evangelized" biotech morphs (most on the OTC). This is an area where real scams took place. While investing in shells can be quite profitable when you get in before all those announcements on an educated guess high marketcaps for a cash-strapped outfits literally smell like the "greater fool" theory to me. This doesn't mean there's no value to be found on the OTC/BB but it's important to separate the good from the bad and ugly there (I recently was able to get into a little profitable cosmetic OTC/BB company called CCA Industries, CCAM under $1 and I think that's a real gem. But that marketcap is $10m not the $800m you cited <g>) best regards CROSSY