The market already had a serious melt down, you are saying it will get worse. Which it might. And I agree, the problems are far from over, although one could make a case for the general market not going much lower here, I also doubt it goes much higher.
JPM is safe in the long term because the FED will protect it, they have a lot of cash and a long expertise in poor market conditions.
If you gave me a choice of one of two stocks that I had to hold for 10 years, GTCB or JPM, I have no hesitation in picking JPM.
GTCB is one mistake away from not existing. If something unexpected happened in their ATryn production, if someone gets ill after taking ATryn, even if it isn't GTC's fault, they don't have the financial depth to be able to handle any unexpected problems.
And I have seen that biotech companies are all prone to unexpected problems. NOTE, this is sarcasm.
But my guess is that the real problem with GTC is that shareholders get diluted so badly that investors get limited profits from GTC's limited sucess. And that is only for the investors that buy at say 45 cents, even though I suspect it wouldn't take much for GTC go down to 25 cents, which I would consider a better value. The real target is now only 1.50.
As far as drug production costs, GTC methods aren't cheap when you factor in having to get approved on a new method of production and factor in the liablity of having two methods of producing a drug like Tysabri.
For instance, if someone got PML from a GTC batch of Tysabri, how would Elan determine what the real problem was? Was it something GTC did or was a basic problem with Tysabri?
So GTC methods of production are only really useful for proteins that can't be produced any other way.
AI
