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Biotech / Medical : Leukosite (LKST)promising new biotech Cy? -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Id who wrote (7)	6/4/1998 9:30:00 PM
From: Matthew S. Aas	Respond to of 35

I don't know Jeff, but I used it as a buying opportunity. The books say you shouldn't catch a falling knife, but with the prospects promising, the volume low, and the float small, I couldn't resist. If it goes lower, I will buy more. I don't think Genentech has made their equity investment yet in Leukosite. Got in around the close at 7. I don't think alot of people know about it.

To: Dr. Id who wrote (7)	6/5/1998 1:19:00 AM
From: scaram(o)uche	Read Replies (1) \| Respond to of 35

LeukoSite went public at a tough time, and didn't raise much $$. It is sort of like Cubist in this respect. During this "research premiums suck" period for biotech, people, and institutions in particular, have been afraid to invest in companies that have both early-stage projects and relatively high market cap:cash ratios. Given little demand, a small amount of selling is painful. I actually suspect that there is a concerted effort by certain fund managers to play with the sector. They accumulate cash and sell modestly into these low-demand periods, driving the sector down at points that seem to lack logic. Then, they buy like heck. It's happened three times since January '97, and there are a few fund managers out there with performance that is better than their portfolios indicate should be possible. The manager of Franklin Global Health Care recently said (paraphrased) that now is the time to buy biotech, that it's the first time in years that he's felt comfortable with the sector. He said the same sort of things last year when Franklin was actually starting a new fund devoted to biotech. Nobody ever calls these guys on their rotten portfolios, or the fact that they badmouth the sector to cover their own lack of insight. The devoted biotech investor, the guy or gal that damn well knows that research premiums are often deeply discounted..... the investor who has done his homework, is the individual that is taking it on the chin. In contrast, the investor that has done nothing more than say "get real, it's a biotech with a market cap of $XXX million..... it's a short!" has generally done well. Ticks me off that those with the least knowledge are those in control. Ugly, ugly, ugly. We are also battling a period where VCs have reduced interest in U.S. biotech; they are bailing earlier, and, in some cases, at any cost. The last time that research premiums were this discounted was 1994. In 1995, it was relatively easy to put together a biotech portfolio that made 300% plus. Lots of "10 baggers in waiting" out there.