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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?


To: rkrw who wrote (6342)1/19/1999 10:57:00 AM
From: Biomaven  Respond to of 9719
 
More details on some H&Q picks discussed earlier:

moneycentral.msn.com

Peter



To: rkrw who wrote (6342)1/19/1999 6:56:00 PM
From: Vector1  Read Replies (1) | Respond to of 9719
 
<< Raising cash shouldn't be a problem here. >>

In a rational environment yes. There have been few biotech financings for under $250m market cap companies in the last 6 months and the ones that have ocurred have not been on great terms for the companies.
The lack of cash is a risk. In my opinion CELG has a good likelihood of announcing a new financing this quarter. I will await the terms and decide whether to buy. If it is a solid financing I will be a buyer. Even if I have to pay a higher price I do so knowing a major risk has been removed. In additon even if it is a high quality financing (and there is a good chance it is) the stock may trade down. Investors in many cases react negatively to dilution.

V1