Biotech Values

[microcapfun]

How walstarb values biotechs ...

>>I look at a % above and below net tangible asset value, and I compare it against historical values - I have been following it since about 1999. It's just a gauge of how much "premium" on average is being paid for the "pipeline" when you subtract out the liquid assets.<<
>>The companies we were tracking in 2003 are much different then now - but they are comparable, mostly small/mid caps < $5b with the majority in the $200 - $500m market cap area<<

LOL! All you are looking at is how hard it has been for companies to raise cash the previous few quarters. When the average company can raise cash, their net tangible asset value goes up and when they can't it goes down.

Undervalued or overvalued has much more to do with the comparison of market cap to pipeline value. But of course you aren't valuing the pipelines at all; you are essentially just looking at the cash!

***

You use the word "we" a lot, walstarb. "The companies *we* were tracking ...". I sure hope you don't invest with anyone else's money ...

micro