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Biotech / Medical : TECHNE (Tech): "selling picks to gold miners"
TECH 77.31+1.2%Jul 12 4:00 PM EDT

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To: Lance Bredvold who wrote (43)8/4/2022 11:39:31 AM
From: Lance Bredvold   of 46
 
And then too, I was surprised to see the price of CCXI showing up in GAAP, but apparently the losses which were incurred as the price declined (due to some sort of FDA balk as I recall) were forced into GAAP so clearly a similar gain would be legitimately there also.

To me, that gain is really a one time event and should be non-GAAP. In fact the current practice of every company publishing GAAP and non GAAP figures is despicable but is the type of thing which happens whenever the market becomes frothy. I can't remember the tricks played back with the nifty fifty in 1969, but people were evaluating prices based on earnings way out in the future as I recall. The important thing to remember is that when the crash comes, suddenly those rosy numbers don't apply anymore.

So the price of TECH is top heavy. And I'm betting it will attain a much more realistic PE ratio (like 25 or so of JNJ) as they stop growing quite so quickly. PE 40 right now might tempt me with EPS rising 20% a year or so based on good management. Plus acquisitions utilize a high PE to help growth along, so while in acquisition mode, a high PE is of great value and will be maintained as long as possible. Thus the enthusiastic presentations from Kummeth et al are to be expected from a talented CEO.

I like TECH a lot, really wish I owned a lot more of it at this point, but will have to wait for a more realistic price which before this CCXI news I thought might get as low as $120 or so. Doubt it will get there now even in a recession.
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