Replies to post #32777 on Cytogenix (fka CYGX)

[david02835]

Holycow, I don't question the ability of management as Doctors and scientists but only in the area of public relations. Many companies feel it is their responsibility and a benefit to the company to keep their stockholders and the public at large educated and informed. CYGX falls short on this issue. Sorry to sound like a wet blanket today. I don't expect instant success in all my investments but I would love to have a feel for a time line for this one.

[bigworld]

Holycow: Today is another day thay I am noticing a lot of negative numbers in the biotech's that I follow. I am not doing anything about it, just watching and observing. I follow the companies I have stock in very closely, and there really isn't any negative news except for the recent action by the FDA against Cortex (COR), and even that might be overblown. I just think it is a sector rotation. Many traders with short time horizons are cashing in and taking profits a little sooner than usual. This is a seasonal phenomenon that usually occurs just before summer starts. CYGX will go back up and surpass the $1.50 range on their next significant PR. AVII, ISIS, PPHM, etc will rebound when they post some positive news. This is just a typical consolidation I hope. Bob Brinker doesn't see anything on the horizon beyond an occasional downdraft of consolidation. According to his April newsletter he is still 100% invested and favors a dollar cost averaging approach to investing new money...in other words, buy on any weakness. For disciplined investors the time to buy is when there is some weakness, but human nature always tells us to do the opposite. We buy on upturns thinking that if we don't buy soon we'll have to buy at an even higher price. But the price always retreats at some point. Nothing goes up in a straight line. I hope all the CYGX longs stay patient and buy on the dips if they have the capacity to do so. More good news is almost inevitable given the players we are in collaboration with. It is just a matter of time.

[downregul8]

Holycow – I know I’ve said this before but it’s worth repeating.

Management performance is not subjective.

“As for views about management, everybody has their own take and is free to build a summary of the facts the way they choose.”

We can decide how we let the facts influence our investing decisions but facts are facts and separate from our views. It doesn’t matter if someone likes management or not, how hard they work, or even to some degree what the daily stock price is. Management’s performance of any company can be gauged by evaluating their ability to set realistic targets, follow through on those targets, andr take clear control and set corrective actions in place when those targets may be in jeopardy. In other words, how effectively did they set, and are executing, the business plan.

Here is the cygx business strategy from their website.

· Develop therapeutic topical products for humans and animals. Upon successful completion of Phase I/II of clinical trials, the company intends to seek licensing agreements with domestic and foreign pharmaceutical companies. These agreements will fund the remaining clinical trials and FDA marketing approval steps.

· Generate revenue by providing Drug Target Validation services while seeking and forming product development partnerships with pharmaceutical and biotechnology companies.

· Develop a cGMP manufacturing facility to produce DNA drug substance for CytoGenix products in development. Additional capacity will be utilized for the manufacturing campaigns on a fee-for-service basis.

Since the first two have been there for something like six years and the sale of synDNA is almost a sidebar to the third bullet, you can decide how well this team has “managed” the progress to the plan so far.

They don’t deserve F’s but they clearly don’t deserve A’s either. As with most things – it’s somewhere in the middle and while I think things could be better they could also be worse. Here’s one example of worse.

http://www.fool.com/news/commentary/2006/commentary06041106.htm?source=eptyholnk303100&logvisit=....

In response to your comment

“if I had serious questions about the competence of the people managing this company, I would run away from this stock as fast as I could.”

As I said before, I’m here for the science. If I had serious questions about the science – I’d run away – but for now it looks like cygx has some marketable intellectual property. As far as running away because of management - it’s a lot easier to replace the management than the science. Malcolm’s not a young pup and I expect at least his position will be turned over in the next five years and it wouldn’t surprise me to see a stock price jump with an announcement of a more experienced successor. My view of management is factored into my risk assessment for this company, and I have invested accordingly – no reason to run but no reason to overboard either. Invest wisely.