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Re: DrMG post# 28939

Tuesday, 08/16/2011 1:32:08 PM

Tuesday, August 16, 2011 1:32:08 PM

Post# of 278716
What we now know is that the silence of the CEO he was complaining so much about last February was imposed on him by the negotiations he was in with SIAL on a deal for the EXCLUSIVE USE IN SILKWORMS OF ZINC FINGERS. It would be impossible to overstate the importance of that deal to KBLB. It is what will prevent any competitor from being able to produce spider silk in silkworms as KBLB is and will give BKLB pretty much exclusive control of the silkworm as a platform technology for the production of high tech fibers, including much much more than merely spider silk.

This is a good object lesson IMHO: When investing in high tech companies you have to be willing to give the company and its officials enough "slack" to be able to accomplish their goals without expecting them to keep you informed of all events at all times. Failure to be able or willing to do that will inevitably adversely affect your high tech investments.

That's not saying that you should not react to long silences or questionable events, just that you should be REASONABLE about it and take time to consider carefully (as in not selling out in a panic because of the concerns raised about a science board advisers withdrawal, which turned out to have little if any significance.

There is NO FREE LUNCH! There is a very good reason that good money can be made in cutting edge technology: to get that money you have to have the due diligence and the guts to get thru some rough patches and times of uncertainty.

Every single company that has made huge gains long term has gone thru such periods of uncertainty with large dips in the SP as a result. Such dips often don't show on the 10 or 20 year charts, but they are there and the very few who ride such companies all the way up (like a 1,000X gain from MSFT in ten years) did it by riding out such events.
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