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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: E.J. Neitz Jr who wrote (6347)	5/22/1998 12:39:00 PM
From: aknahow	Respond to of 17367

I don't want to double count the impact of duPonts redeployment of cash from the oil to the drug sector, so if they do buy AMGN the funds in the hands of prior holders of AMGEN will not be a new infusion of cash for the drug sector but just the effect of duPonts leaving the oil sector. That said those that take cash or sell duPont shares they receive will probably redeploy the majority of the funds in the biotech sector. Jim McCamant was big fan of Amgen. Some of the investors in AMGEN will look at his other picks of which one is XOMA. If as little as 1% of $25 billion gets moved to XOMA that is $250 million. Lots of ifs ands and buts. We don't know if the merger will take place, nor the percentage in cash or stock. DuPont may offer stock and then simply repurchase its own shares with the CONOCO money as it comes in. This would IMO reduce the available cash AMGN holders would redeploy. Taxes etc are all other factors. Even so it is as you said a big plus for the biotech sector and I also think a bit more impact on XOMA than one might think due to the McCamant factor. In addition if AMGN is against the merger and fights to remain independent they may reach out for white knights for a higher price and or buy other companies. Not XOMA but others which again would generate more interest in biotechs.

To: E.J. Neitz Jr who wrote (6347)	5/23/1998 11:09:00 AM
From: aknahow	Respond to of 17367

5 additional mutual funds purchased XOMA according to data in the Investors Business Daily. Funds holding any amount of XOMA rose to 19 from previously reported 14. These numbers are not for all institutional holders but only mutual funds. Nor do they provide insight into the percentage of shares owned. Interesting that while some on Yahoo were posting 50 or more different reasons XOMA was "no good", that mutual funds were buying. Tashica lives! Down with funny dogs! <g>