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.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: JoeinIowa who wrote (3295)	3/14/2003 1:38:36 AM
From: Crossy	Read Replies (2) \| Respond to of 37387

Joe, re: IPSU seems that sugar prices must be quite high at the moment. So IPSU wants to be able to sell more taking advantage of the current situation.. rgrds CROSSY

To: JoeinIowa who wrote (3295)	4/3/2003 1:36:29 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

re: NasdaqNM - SPPI (Spectrum Pharma) @ $3.00 Without having delved too deep into its merits and weaknesses, Sepctrum Pharmaceutics (NasdaqNM: SPPI) @ $3.00 this company looks great to me from a fundamental angle. The main problem with nearly all biotech firms is their "venture" nature of the pharma biz. Biotech firms are usually stuffed with million of cash in order to carry the firms through the FDA trials phase. During this time, usually, no revenues from products can be achieved and the companies are essentially "Real Options" for a future revenue stream, after the FDA would have given their nod on a new compound or formulation ("NDA" .. New Drug Application). Thus, essentially most research oriented biotech firms feature an "unbalanced" portfolio in that their revenue stream is within the bounds of FDA decisions and it can only be materialized in the future. The ensuing volatility is a function of this nature of business risk. IF the cash pillow runs dry, new financing sources need to be tapped, often resulting in considerable dilution. All the factors together make biotech investing an area for experts and not for the faint of heart. How much more attractive could be a research oriented biotech or drug company if it features a recurring revenue stream aka a "balanced" portfolio ? In essence such a change in the underlying business model results in a huge reduction in risk. Recnetly I invested in Repligen (RGEN) which has a biomaterial franchise (Protein A) producing steady cash flow apart from their biotech operations that need to be financed. Other possible area of recurring revenues could be any medical service performed, where the company might have expertise as a "by product". NABI's antibody collection operations fit this definition. Yet another interesting opportunity to create a "balanced" portfolio would be to augment the risky research oriented operations by a generic brand franchise, as such leveraging the expertise the firm gained in "dealing" with the FDA for the generic market also. Spectrum Pharma (SPPI) is exactly such a case. It teamed up with JBPharma of India (listed on the Bombay Exchange) to form NeoJB of America, Of which 20% is owned by SPPI and 80% by JB Pharma - dedicated to the introduction of many JB produced generics into the US market. In addition to this the company has a considerable pipeline of 7 compounds in various stages (preclinical to phase3) : spectrumpharm.com Around 2.7m shares are outstanding at the moment. To me it looks like an early stage play in a balanced portfolio at greatly reduced valuations. Today the stock shot up 30%. Will post more on this company here around (some recent financings, biz approach etc.) rgds CROSSY