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Biotech / Medical : T/FIF Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Miljenko Zuanic who wrote (396)	1/7/1999 9:26:00 PM
From: scaram(o)uche	Read Replies (4) \| Respond to of 1073

MZ: Your questions hit home. First, I own some CBST. I forget, did I add some to the portfolio today? I'll check. Second, I own some GENE. Third, until the mess December before last, I owned some MCDE. So, I've been shooting all over the map, trying to nail an antibiotic company. But, I think that I'm probably not much better than even, if that. Still like Rurka and Hogan. Love the potential for daptomycin. Now, GENE...... it was purely a value play. I feel that the patents and the discounted royalties from potential database mining hits (yeah, I know, but one needs to build them in as though they are real) are worth the current market cap. Cash (33M) is free from this perspective, assets are well above cash (50M). Book is lower (27M), but MC:book is still quite reasonable. Why today? The Q1F99 earnings report came out this morning, and, despite comfy cash levels, there was discussion about having cut back on administrative expenses....... biz.yahoo.com Further, there was discussion of biotech:biotech collaborations (KDUS, ARQL) as though they were actually respected. Some day, one of these biotech:biotech collaborations will go, and GENE is active in screening. I want to be largely in cancer, aging (osteoporosis, etc.), neurology and antibiotics going forward into the new millennium. Serious players subscribe to PathoGenome, making them a serious candidate for buyout if a subscriber hits. I am least interested in asthma, and Schering-Plough just expanded the program and two milestones were hit in '98. Bottom line..... it's just a bargain. Of course, if you manage to find a great, tart and yet sweet apple for a nickel, you'd have found a bargain. If you put it in the refrigerator and ignore it for a year, you'll have a rotten apple. We had some cash. GENE has a diversified program and a business plan with potential leverage. Seems like a good match, cash and a bargain. I'll probably sell if I don't learn of something headed to preclinicals within a year. I'm worried about sense of urgency. Cheers! Rick