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Biotech / Medical : ARIAD Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (303)	5/31/1998 2:22:00 PM
From: scaram(o)uche	Respond to of 4474

Steve: >> There was an apparent downgrade of ARIA from strong buy to hold. Before the 25th Ariad had all strong buys, while now there remains two strong buys and one hold. Was there a move all the way to a hold from a strong buy? Who did this and why? << Who? If it's the usual, some clown at a major underwriter that is labeled "analyst" that (1) doesn't have a sufficient background and breadth to judge the science, and (2) has vested interests. Why? See "clown". If you use a reporting agency that follows broker's recommendations as a basis for biotech investing, you will lose a load of money. Veteran biotech investors, at least those that I know, either ignore the ratings or use them as contrary indicators. Argonaut.... they've been quietly communicating with combichemists for a long time, with the objective of automating the combichem process (minimize volumes, optimize purity, etc.). The consortium can be viewed from sort of an ABSC stance.... they've established enough credibility that they went out and said "hey, want access to our next developments, and want the opportunity to have your scientists tell us what they need? Pony up, please." ARIA has a history of spending up-front to get the tools that they need, while certain other biotechs do without. An example..... not many biotechs have licensed the LifeSeq database. ARIA was the second. You're having trouble understanding what Argonaut is.... they're an equipment vendor, trying to establish a consortium that insures them the lion's share of the market for automated chemistry systems. I wouldn't worry about the Argonaut deal. First, I doubt that it's a huge capital outlay, and, second, it's just another step to insure competitive advantage. Rick