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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Martin A. Helfand who wrote (27305)	4/10/1998 11:24:00 AM
From: Knighty Tin	Respond to of 132070

Marty, Different people have different approaches. First, I would write a note to Henry Niman over on the Ligand thread. He is a great source for a lot of bio cos., but especially those that have any Ligand connection at all. You have to read the prospectus and pay special attention to competition and funding. Then, I always try to figure out the value of the co. in 10 years if just a third of their projects come true, try to estimate the funding they will need to bring a product to market, and try to judge whether they are ahead of or behind others trying similar stuff. This is difficult work with a new issue. I pay little attention to what the market herd thinks. The key is, can this co., certainly a speculative level start-up, be purchased for a price that makes it look attractive in a portfolio of 5 to 12 biotechs. If the Morgan brokers hype it past that price, I'd wait. Otherwise, might as well get in on the IPO and skip the commissions. But it has been tough sledding for bios, in general, in this market, so don't pay up for it. good luck, MB