I had sold most of shares awhile back. My concern for the high level of the market, critical analyst, Salomon's Mullins, pulling his support and no earnings was getting to much for me.
Vic I became interested at first since i had made money "flipping" the IPO. I knew that they had alot of cash and with Salomon and First Boston underwriting the deal I figured the product had a real chance. When it went from an opening at a $3 premium of $24 to $5 in 4-6 months to $5/shr. I thought it was worth a look.
My largest concern related to management new policy to joint venture the product verse license it(what they orginally said) This involves a lot of cash. Without a cash flow or firm contracts they won't be seeing any new debt. If they attempt to sell stock, it would not be a pretty sight.
Sorry to be so downbeat. I just think it will be a bumpy road for awhile. I think they will work it out, when some of the largest companies in the World take interest, there is something there I'm sure. Thx for your interest.
Now the spam...My new "puppy" is MATR($5.25). Started buying it last fall. Nice cash flow from obstetrics. They bought a diabetes firm(Sam Zell part owner) last winter, they are now the largest home diabetic care firm going. Earnings could be $.40/shr. this year(13p/e). Goldman bought 10% a few months ago. And the big shhhhh, they bought a division from WEBMD and get alot of stock and warrants. WEBMD sold to HLTN for 1.815 shares. Looks like possibily 600K of HLTN @$111/shares or $1.85/share. Hopefully used to clean up the balance sheet. New price over $5 means new research coverage too. Stock could settle back a little so buy in peices, IMO.
My other buy is CNDO, $15. Bought it as a yield type play. You accountant types will like this one. An off balance sheet company from ALZA. Used to move RD expenses off the books of ALZA to make ALZA books look better. A spin off from Alza pham. with $300M in cash. CNDO contracts the research and retains the rights to the product. In Jan of 2002 , and anytime up too that, ALZA can buy out CNDO s/h for a series of different prices(multiple of product sales, that kind of thing, it's in SEC docs)Anyway the minimum price is $20. At $15, $5 divided into 3 years equals 11-12%. As of last FEB ALZA licenesed it's first product from CNDO, ditronpanXL for bladder problems. IT's been a bigger then expected winner for ALZA. $65MM in sales alone this year. Well CNDO owns the patent. Since it's been should a success and CNDO is running out of money. I figure ALZA will exercise it's option to buy CNDO next year. If sales of ditrolpanXL go the way their going it will cost ALZA a lot more then $20 to buy out CNDO shareholders. CNDO also has one other product in level 3 trials. Anyway check it out. VERY thin though. When buying, put limit orders on the bid side and be patient. There are only 5MM shares outstanding.