Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cary Salsberg who wrote (6615)	6/22/2002 9:35:57 AM
From: Robohogs	Respond to of 52153

Biotechs which were profitless have existed for a long time before the bubble. You seemed to state that these companies would not have gotten public if not for the bubble. That was what I was saying was wrong. In one sense you may be right, there well may be no floor for these stocks because in a "show me" market, what can they "show me?" I think it is irrational myself, but WTHDIK? Jon

To: Cary Salsberg who wrote (6615)	6/22/2002 3:27:40 PM
From: Ian@SI	Read Replies (1) \| Respond to of 52153

Cary, Many of the emerging biotechs mentioned on this thread have no approved products, or none of blockbuster status yet... The assets being valued tend to be their Intellectual Property, the reputation of their scientists and management, the quality and progress of their pipelines. Until a significant drug is approved, the assets are intangible at best if not abstract. How the market values such assets at any particular point in time is subject to its whims and fancies. So when it sees some rascals (is that spelled, "Waksal")behaving in a morally bankrupt fashion, the sector gets tarred with that brush. Similarly having a leaderless FDA isn't helping valuations -- A setback for one company seems to affect the sector. And if that wasn't enough, the market seems to fear that the Government will stick its fingers into the pie under the guise of improving prices seen by consumers. The latter may well pass once November has come and gone. Without an informed scientific medical opinion, investing in this sector is little better than buying a lottery ticket. And even with an informed opinion, the stock prices are still subject to whims...