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Biotech / Medical : Aurora Biosciences (ABSC) -- Ignore unavailable to you. Want to Upgrade?

To: DCOS who wrote (34)	10/22/1997 4:49:00 PM
From: Joseph wang	Read Replies (1) \| Respond to of 359

GDT, pretty interesting. As for ABSC: I am a buyer based on the following 1) its technology and marketability 2) Roy Whitfield has recently become one of the board of directors (he's CEO of Incyte Pharmaceuticals) 3) capitalization is small Whitfield has a strong presence in the biotech community ....look at his outstanding achievements with Incyte pharmaceuticals. He is an excellent resource to a small growing company like Aurora. Just by association, he will attract investors to buy ABSC and also he can potentially convince clients to implement ABSC's technology because clients have positive confidence in Incyte's genomic database (and he's well known after forming collaborations with 20 pharms with Incyte). as for Aurora's technology, I think they can achieve relatively high profit margins, they just need clients and revenues for the coming quarters are going to show healthy growth. They definitely will see substantial operating costs thus showing losses for the next few quarters but eventually high profit margins for their technology sold to a large host of pharmas will overcome these losses. Also, as far as IPOs go, the stock is trading at a good value...capitalization is at a reasonable level...alot of pharms are trading at levels of $1 billion dollars or more while only realizing as little as $50-100 million in revenues annually. Investors will see Aurora's true potential when it gets a few more contracts and when the numbers come out. as for the recent decline, I noticed that 80,000+ shares were dumped...that's an obvious sign of profit taking probably resulting from margin pressure due to the market decline last week or perhaps the institution decided to raise cash to go bargain hunting for stocks that were extremely volatile (especially in the tech sector where stocks oscillated greater than 10% which presented buying opportunies of call options or selling of puts). If you notice, ABSC didn't recover much from the decline probably due to general lack of interest in the stock and also those who own it are not about to buy more (or are not in the position to buy more). -JW