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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Henry Niman who wrote (27122)	1/1/1999 9:43:00 PM
From: j g cordes	Read Replies (2) \| Respond to of 32384

Hi Henry, this note from Jan 11th Forbes includes LGND "Michael Murphy of the California Technology Stock Letter has devised a quantitative approach to analyzing emerging technology companies: He calculates a statistic he calls "growth flow," which adds R&D spending per share to earnings per share. Murphy favors technology companies that are trading for the lowest ratios of price to growth flow. An example is Autodesk, the leading CAD software vendor. Based on current earnings per share of $1.43, ADSK at 36 3/8 has a P/E of 25, which most investors probably would think is on the high side. Add in the company's R&D per share, however, and the ratio drops to around 10--indicating that the stock is, from Murphy's point of view, undervalued. ADSK is one of the core holdings in Murphy's model portfolio. For new money, Murphy's top picks right now are: Intevac (IVAC), Ross Systems (ROSS), Read-Rite (RDRT), SEEQ Technology (SEEQ), and Mattson Technology (MTSN). James McCamant utilizes another method of analyzing the value of emerging technology companies. McCamant is the editor of two of the letters the HFD tracks, AgBiotech Stock Letter and Medical Technology Stock Letter. McCamant's preferred method is to talk extensively to each company's competitors as well as to the potential licensees of the technology. McCamant has found through this process that a strong consensus often emerges about the worth of each company's technology--and furthermore, that this consensus often is at odds with Wall Street's opinion. McCamant's latest picks for his model portfolio: CytoTherapeutics (CTII) and Arris (ARRS). For his aggressive portfolio (which utilizes margin, and hence is much riskier), McCamant recently bought Isis (ISIP), ImmunoGen (IMGN), Ligand (LGND), and T Cell Sciences (TCEL)." I believe Perkin Elmer is hot on the genome trail. Jim