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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Steve168 who wrote (17213)	6/11/2003 11:23:57 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78742

Steve168, re: "Investors are grabbing up all under-cash value stocks". I'm being more aggressive about doing that now too (as you can see from my posts). Not sure whether I'm calling myself an "investor" or a "speculator" here. Maybe it depends on how long I'm willing to hold the positions. It does seem to me the window on these type stocks is closing. And that I'm rushing to get in before it slides shut. What closes could open again though. Most of these stocks are already up quite a bit (percentage-wise) from just recently. So there could be large-scale profit taking at any time. Thanks for mentioning VICL. I'll likely start a position. I won't buy as much as you if I buy; I'm just trying to add to a small basket of these things. Paul Senior

To: Steve168 who wrote (17213)	6/12/2003 9:33:48 AM
From: cpabobp	Read Replies (3) \| Respond to of 78742

RE: VICL or any other "below cash" stocks I'm trying to understand this philosophy of buying under "cash value". For example, VICL, I show at 3/31 they had 14,723,000 in cash plus 84,582,000 in short term investments, ok so there they have 4.94 in cash per share, but they've got current liabilities that were most likely paid with that cash some time in the quarter (even possibly on 4/1), so I'd back out 10,745,000 or .53 of cash to 4.41 net cash per share. Since VICL hasn't projected any income stream, I'd also have to assume a cash burn rate during the quarter as well, right? They've been burning between .55 and 1.44 per quarter during the last 5 quarters, so where's a good price? I'm not just picking on VICL, I just don't understand the valuations of bio tech stocks that are not profitable and I'm not familiar with the "below cash" method of valuation. Any comments? Bob Park