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Biotech / Medical : Biotech & Pharma.T.A, -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (704)	1/28/2005 5:55:04 PM
From: Jibacoa	Read Replies (2) \| Respond to of 3722

Mike: Re: GLGC The stock seems oversold at present. It is trading at a new 54wks L and below the level where the insiders reportedly bought last August. As I previously mentioned,the revenues on the last 2Qs have been 4% lower compared to previous year and it has had a higher loss for the 3Qs, especially the last.(Sep.) As I said, I don't know if GLGC will meet expectations for the Dec.Q since the total loss for the current year is $0.68 and the 9 month loss is already $0.78. (In 2003 the last Q loss was $0.16) In order for the EE loss to be correct, it would have to report earnings on the black column of $0.10/share, which seems unlikely. I also didn't understand well their deal with AFFX for 2005. The current price is below its reported cash/share,($3.35) and its Debt/Equity ratio 0.006 doesn't look bad. Looking at its Hs & Ls in the last 8 years, the lowest H was last year (Mar.5 at $6.04) before that it always traded at $8 or higher sometime during the year.<g> As mentioned, the present L is below last Aug.($3.15) and it is the lowest since 1998. Unless you expect the stock to make a V bottom, it seems wise to wait for the stock to try to make a "base" at present levels and for the last Q earnings to come out before trying to add to your position, especially since it is usually not a good thing to "average down".<g>(The stock needs to close above $3.20 in order to get off its present near term down trend) Bottom line: The stock looks cheap at present levels and it seems to have a chance for a 100% gain from present levels in the next 12 months unless the general market continues to deteriorate. We certainly have had a very negative "JANUARY EFFECT" this year.<g>(Just in case is good to keep some cash handy.) RAGL Bernard