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Re: richclaire2020 post# 25076

Tuesday, 06/21/2011 12:22:01 PM

Tuesday, June 21, 2011 12:22:01 PM

Post# of 294022
Public misinterpretation of news and how it's affected KBLB already and could in the future:

What happened last year with the spike:

On 7 Sept KBLB announced that it had successfully inserted genetic modifications into silkworms. The stock price remained at the same flat 3 cents it had been. No response. Nada. Not even a twitch.

A week later KBLB said that,"In response to the feedback from our September 7th press release regarding genetically engineered silkworm, we are happy to readdress our press release here in layman's terms" and "The genetically engineered silkworms are true moths which have been transformed with only one carefully targeted spider silk gene sequence. That gene sequence relates specifically to silk production."
Thompson added, "We believe that the spider DNA has fully integrated into the silkworm chromosome. This genetic engineering success clears a major hurdle in our path; it puts us well ahead of our product development schedule and will allow us to further accelerate product development"

And, on exactly the same news just put into more comprehesible terms, the SP soared to as high as 26 and opened at 19 the day of the CC. IMHO the investors probably were certain that if the gene was in there, the worms would necessarily produce pure spider silk.

But on the day of the CC the SP closed down at 15 and drifted steadily down to 7. What happened? IMHO the investors misperceived the news that the worms had produced a mixture of spider and worm silk as a disappointment (because of their unrealistic expectations) instead of as the remarkable achievement that it was and a very important step towards the ultimate goal of pure spider silk.

The sharp spike was not due to "pumping" so much as it was due to unrealistic expectations and then a failure to appreciate the real impact of the actual results. If you want to know who to blame for the roller coaster, look in a mirror.

I try very hard to provide the relevant background in terms that the average investor can understand so that when things happen whatever decisions are made are based on what is really happening rather than a misinterpretation of events. That's why I don't say that the ZFs are "sure" to work the first time. More importantly it's why I hope to get people to understand that if they don't, it's not the failure that most would misperceive it to be - because a need for an occasional "tweak" is inherent in the ZF technology.

Such sharp spikes and dips are not good for the company (despite that traders love them)and hard on the average investor.

But anyone investing in a cutting edge biotech should be prepared to deal with such things, it comes with the territory. In a year or two, when KBLB is on the NASDAQ (or whatever) and making a profit volatility will still be high but considerably less than what it is now, IMHO. If you want the gain you have to get thru the pain. Maybe long term investment in a biotech just doesn't suit you.

RE:"Sucess of Z finger should bring .20+ that is the only reason I am still in this thing." IMHO you are completely missing 80% of what KBLB has. But I guess if you're only in it for the short term, that's of no concern to you.
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