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Biotech / Medical : ICOS Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Dowjoe who wrote (661)	4/5/1999 10:46:00 AM
From: Edscharp	Read Replies (1) \| Respond to of 1139

Dowjoe, I agree that investor emotions can and do affect stock price. What I doubt is that this is a valid or objective way to identify actual value of a company. My favorite example of hysteria is Entremed. They had a great article a year or so ago in the NY Times concerning their progress with an anti-cancer product. Unfortunately, what most investors ignored is that other companies are also using similar techniques and are in fact ahead of Entremed in their research. Regardless of the efficacy of Entremed's product their stock price is in for a big fall if one of their competitors reach this goal first. As a rule I don't short stocks, but Entremed is tempting. Please remember Bill Gates is not GOD and he can't predict the future. He is betting! He is betting that that the management and science behind ICOS will produce results and by all accounts, relative to other biotechs, this isn't a bad bet. They are making progress. But if blind emotional sentiment keeps pushing the price of ICOS up it will significantly alter the risk to reward ratio. All biotechs take similar risks that their products may fail clinical trials. If this happens to ICOS their stock will take a MAJOR dump. And this goes even for a Bill Gates company.