Chiron | Stock Discussion Forums

To: Edward Paule who wrote (1028)	3/29/1998 11:17:00 AM
From: tango	of 1352

If a firm is covering a company it is usually only a matter of a few days to do an upgrade.proof was with the suprise earnings from informix a month ago, they had upgrades in a matter of hours. I did notice CHIR was raised from neutral to attractive by one firm about a week ago. I know a guy that works for CHIR and he says there was a big rumour around the co. that they were to be bought out and that was why the stock ran to $24 last time. He also said things are really being shaken up and there is a strong push to be more sales oriented and less pure research (he was being pushed into sales)So far this baby has barked but i think it will come around.FDA for mytrophin(spelling?) in early april.

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To: Mr. Giller who wrote (1032)	4/1/1998 11:12:00 AM
From: Edward Paule	of 1352

>>>>> I'm new at this. <<<<< Welcome to Biotech investing! SI is a great place to learn about Biotech investing and Biotech companies. Just go and read the older posts. For starters, the PE ratio for Biotech stocks is totally meaningless. Just as the current PE ratio for mainstream stocks like KO is also meaningless. Stocks do not trade at values based on their current earnings. Stocks trade at values based on what their anticipated future earnings will be. What's fun about Biotech investing is that these future earnings are extremely difficult to determine. Others would say that's the problem with Biotech and stay away. Biotech stocks are very volatile by nature. Often these stocks are severely undervalued. That's why 100% of my portfolio is invested in Biotech stocks. The potential rate of return is enormous, and diversifying between a dozen different companies helps mitigate the risk. I would recommend taking a look at CHIR, ICOS, ISIP and XOMA for good start on building your own portfolio. Ed.

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To: Edward Paule who wrote (1033)	4/1/1998 2:29:00 PM
From: Steve Lokness	of 1352

Ed; I agree with your excellent picks for pure biotech plays, but why not diversify in this area? It looks as if all your picks are dependant on product development that could be tempered a little with biotechs that are in other areas. Why not add a gene testing company - (VGINF, IDBEF or MDYN) - and a CRO company - (CRLS) - and a biotech in the gene field - (AXPH, CEGE, GENE) and a company developing chemical combination libraries - (ABSC, PCOP, ARQL or TRGA) and a testing company - (NEOG). Many of these listed have or shortly will have substantial earnings (MDYN, VGINF, CRLS, NEOG)and yet still be a small biotech play that may have some downward protection, while others (ABSC, CEGE, AXPH and TRGA) have huge upward potential. The biotech field is littered with companies long on hype and good ideas and intentions, but have been crushed when a good idea flounders. One thing for sure no shortage on exciting days - both down and up. Hang on for the ride. Steve

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To: Mr. Giller who wrote (1034)	4/2/1998 6:44:00 AM
From: OldAIMGuy	of 1352

Hi Mr. G, Next is to learn how to profit from the bumps along the way! Most Bio's will make good use of a back-up cash reserve over time. I start with an initial position with which I have comfort and then reserve some buying power in the form of extra cash. If my initial price wasn't the BEST, I will continue to average down. I then recover my cash as the price starts to rise. This method has done well for me with CHIR and several others in the past. CHIR has built up a substantial cash reserve for me through the 4:1 split a few years ago. However, the pathetic action of the stock's price since then has absorbed essentially all the cash I'd built up previously. I've made small profitable trades around my core holding both on the buy and sell side while waiting for CHIR's next upside move. I have to admit, CHIR has challenged my normal very long term outlook. Best regards, Tom (still long a bunch of shares)

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