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To: ms.smartest.person who wrote (734)	11/13/2001 7:18:05 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 5140

Briefing/Stock Brief: Trader's Edge: Gene Logic (GLGC) 09-Nov-01 15:50 ET [BRIEFING.COM - Robert J. Reid] Gene Logic looks like a good trading vehicle over the next two months as a number of deals are expected to be announced this year. It's liquid enough and has earned investor confidence with five consecutive quarters of beating estimates. Background Gene Logic (GLGC 15.07) is a provider of biocontent and bioinformatics products related to gene activity in human disease. Its products include its flagship product, the GeneExpress Suite of databases, which is a growing reference library of gene expression information to be used to discover drug targets, prioritize therapeutic compounds, predict toxicity, determine drug efficacy via pharmacogenetics, and facilitate clinical trial development and patient management. Currently, a number of pharmaceutical and biotech companies use its various gene expression products throughout their drug discovery and development programs. Key Points * Customer Wins: Expect new customer wins over the coming months, which should act as catalysts. Currently, Gene Logic has 18 customers, but it expects that number to grow to 25 within two months. In Q3, Pfizer extended its subscription to five years. * Growth Looks Strong: The company forecasts sales of $65 mln next year, which represents a 50% increase over this year. The company is losing money, but expects to post smaller losses next year. * Continually Beats Consensus: Gene Logic has beaten consensus estimates for five consecutive quarters, including its recent Q3 report on Oct 29. * AFFX Gaining Acceptance: Gene Logic generates gene expression data from tissues and cells it collects through its biorepository network using GeneChip microarrays produced by Affymetrix. Acceptance of the Affymetrix GeneChip as the standard DNA chip is increasing making Gene Logic well positioned for continued acceptance of its database products. * New Database Products: Gene Logic is expected to announce new products such as additional Data Suites, which are smaller and focus on a specific disease areas such as cardiovascular disease. This will help the company gain share in the market for smaller customers, which hopefully will expand the relationship as they grow. * Strong Balance Sheet: Company has cash balance of $199 mln in cash/inv, or $7.46 per share. Long term debt is minimal. * Good Publicity: With seven analysts covering the stock, it gets good sell side coverage and thereby the ears and eyes of institutions. Earlier this week, JP Morgan upgraded the shares. Has decent liquidity with 180,000 average daily volume. * Insider Sales Stopped: There was a good bit of insider sales this spring and summer. The last reported insider sale was in June. While there have not been any insider buys since then, at least the selling has stopped. * Bottom Line: We see this one as more of a trade over the next couple of months as deals are announced. It'll probably move back to the low teens as it got a pop on the JP Morgan upgrade setting up an attractive entry point for a trade. Also, any rally in genomics would be a catalyst. We recommend a stop loss at $10. If it goes that low, that would be a concern. GLGC - One Year Chart <http://www.briefing.com/graphics/stkbrief/20011109glgc.gif> Please feel free to share your comments or ask questions of rreid@briefing.com. <http://www.briefing.com/images/Briefing/bullet_top3.gif> Back to Top Copyright © 2001 Briefing.com, Inc. All rights reserved. Used with permission of briefing.com