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

To: BulbaMan who wrote (5108)	12/11/2001 3:20:09 PM
From: Biomaven	Read Replies (2) \| Respond to of 52153

Bulbaman: given that going long has a humongous risk-reward advantage over going short I don't agree with you on this. Excluding the small long-term upward bias in the market, a stock in a given period has about as much chance of going down say 50% as of going up the same 50%. My personal view is that biotech is currently in a long-term secular bull market, so I feel the risk-reward is currently skewed some to the long side. The overwhelming presentation bias from both companies themselves and the "analysts" ("investment bank sluts?") that cover them is on the bullish side. Thus I welcome well-founded research from the short side. Not to say I don't feel a frisson of pleasure every time a biotech short gets crunched, but that's strictly my heart not my head. What I do detest are the shorts that spread distortions and rumors about companies to try to manipulate their stock price. Unfortunately biotechs make easy targets. ("FDA investigating their trial... enrollment has been slow... there are undisclosed tox issues with their molecule...) Peter

To: BulbaMan who wrote (5108)	12/11/2001 5:53:37 PM
From: Michael Young	Read Replies (1) \| Respond to of 52153

I can't agree with you, especially in this sector. The very nature of biotech allows unscrupulous management and analysts to "pump" a junk equity to very lofty levels. It presents a great opportunity for health care hedge funds to do very well with selective shorting. MIKE