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Biotech / Medical : CNSI Cambridge Neuroscience -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (499)	2/6/1999 8:22:00 AM
From: Mike McFarland	Read Replies (1) \| Respond to of 675

I see I have the honor of the 500th post! I'll try to increase the quality a bit over some of my recent posts...here goes... I took the following checklist from a fella off another thread. Let's run through the list on cnsi. The list comes from Dan off the CEGE thread. Just disregard the gene therapy bit. 1) Overall, relative market capitalization given prospects. Thus, if there are a few gene therapy companies trading for peanuts, and at the same time investors will pay huge sums for hundreds of Internet stocks, I see opportunity (potential for high demand but small supply of shares). Check! cnsi's valuation is equal to about one third of money that should come in over the next, say, five years-- just for rhGGF2. Burn is covered...more than covered by the deal, and they've pared everything back so far, would not surprise me to see a little re-hiring. Maybe all of that was part of the plan--sort of a restructuring. 2) Partnerships. Check! Bayer. Okay okay, not really a partner in the sense of a drug going to market, but I think having a partner so early is a strong signal. 3) Milestones, and milestone payments. Quality of milestones -- are they announcing results from a test tube, or from clinical trials? No. Waiting for IND filings...then clinical, a long road and I've always said this is an investment with pop appeal. 4) Breadth and applicability of technology; potential for revolutionary product introductions. Check! I think so anyway, I've read everything off their website and out of the PR from the last year. Checked what little I understand against my cell biology book etc. Plus the various indications show how just how a successful compound can work its way into numerous areas. Of course only a gaggle of neurobiologists and CNS specialists could really judge the potential--with any luck cnsi will get some coverage in the years ahead from neuroinvestment or another of the newsletters. 5) Track record (how long a company has been doing work in an area). Check! Although not a track record which is full of success...nevertheless, there are a smattering of T's that are fairly old, and to me this feels like a whole new second chance for cnsi, not many get a second chance. recap.com 6) Balance sheet. Are they strapped for cash? Check! Why they even turned a profit this quarter, so we know the burn is not that bad. I wouldn't expect them to have net income of course, but that I am not worried about. 7) Buyout potential, given all of the above. Check! I would think any of the neuro companies, or maybe even a immune company would like to suck up tiny cnsi...although it might not be in the long-term interest of shareholders. They could sell out now for a few bucks a share, but that would be easy money. The best thing for the stock is long term sucess. 8) Analyst coverage. Not at all. At least no coverage that I am aware of. --MM