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

To: Extra Pale who wrote (416)	1/6/2002 4:45:03 PM
From: jeffbas	Read Replies (1) \| Respond to of 438

ExtraPale, my background is finance - note this post of mine from Yahoo which puts a little additional perspective on the $32M deal. messages.yahoo.com Traditional investment analysis would say that the current value of any asset is the present value of the future stream of profits that will be generated, discounted at a suitable interest rate. In this case, most of the diagnostic sales that generate profits would be years down the road - which leads me to the conclusion that this is a very good deal for GZMO now, especially versus the alternatives. I tend to agree with your conclusion that genz would not invest the bucks unless they are optimistic about the success of the vaccine programs - but note they ARE getting something which may be of good value even if the programs fail. It is just that if they thought the company would fail why not let buy the same diagnostic assets for less when the company is more desperate. I would also point out that $32M is really the equivalent of a good deal more raised in a public offering, when you take into account the expenses and commission discounts that were avoided this way.