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

To: Elmer who wrote (6604)	6/21/2002 7:18:52 PM
From: Cary Salsberg	Read Replies (2) \| Respond to of 52153

I agree that P/S is not a very useful valuation tool. I don't think "replacement cost" is very useful, either. Proprietary is not too important if there are 5 proprietary drugs to combat the same malady. When a stock sells at cash per share levels, the business is perceived as valueless. Many of these companies have the characteristics of pre IPO, venture capital supported companies, yet they are public. IPO, before recent bubbles, meant a reliable track record of profit. I suspect that these stocks will continue to suffer until, individually, they change their character from a venture capital model to a public company model. I think appropriate valuation models will convert research, pipelines, and actual sales to expected reliable profit levels and expected time to profitability.