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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (6719)	3/19/2005 12:18:44 AM
From: Walkingshadow	Read Replies (1) \| Respond to of 8752

Jill, let me read this and get back to you later. Looks interesting, just glancing at it quickly. T

To: Jill who wrote (6719)	3/19/2005 1:57:46 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 8752

Hi Jill I notice that Linguagen has been in this field since 1998, and has a salt substitute product on the market without a lot of success. They are trying to develop other products including compounds to neutralize bitter flavors, and seem to be concentrating on basic discovery research---that tends to have a very low payoff probability, and is a long-term undertaking. Senomyx IPO'd last summer, but sales growth is -13% a year: hoovers.com In looking over the companies in this sector, SNMX appears to have a significant lead. But they cannot succeed on their own; everything depends upon whether they can (1) develop products that are useful, and (2) convince manufacturers to incorporate their products into food formulations. The first part is slow, although SNMX has developed high-throughput methods. They will probably be successful at this part, which is their expertise. The second part is much less certain, and depends upon whether or not food manufacturers think it is worth it. So far, SNMX seems to have made some inroads there, judging from the alliances. But they don't seem to have a crowd beating down their doorway, either. And revenue growth has been slow. Here's the chart: stockcharts.com[w,a]daclyyay[dd][pb50!d20,2][vc60][iLg!Lp14,3,3]&pref=G 139.142.147.218 I think this is not such an interesting company, but is still the best in its class and will no doubt develop faster. The chart tells me that SNMX is consolidating after a gap up, will likely test the upper BB rail at $13, and buy signals now suggest that momentum may be sufficient to push the upper BB rail open somewhat. The conservative approach would be to wait for a correction to the 40 ema or 50 sma, then consider a long position at that point. Note that volume in this stock is rather low, so technical analysis is hazardous. T