Sangamo BioSciences (SGMO -8.3%) slides after presenting new data from its program to develop a...

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rcostos Comment (1)
 
Have owned Sangamo more than two years and continue to be impressed with the management of this company. Instead of burning through cash and ultimately diluting their stock to raise capital, they have managed to convince large Pharmaceutical companies to contribute capital for pieces of specific product developments. Since these folks are considerably more knowledgable than I am at evaluating these future products, my confidence in SGMO having ultimate success is higher here then most other biotech or other speculative investments. An actual CURE for aids is pretty amazing if and when it comes about but the delivery technology that they have developed is equally interesting. Many major treatments could advance using these technologies and offers difficult to calculate future potential. My basic interest is long term, probably five years to see this research produce real earnings per share and have a better understanding of what their long potential can be.

The recent price drop is understandable as profit taking into the good news announcement combined with an understanding that it still will be quite a while before earnings show up. Given it's strong financial position, this roller coaster ride doesn't seem too scary as long as you focus on the potential of some monster products coming out of their development pipeline. Although this stock will trade with a high beta, it's long term value with not depend on the market or the economy. Kind of nice addition to a portfolio when so many other names are so highly correlated to the market.
7 Mar, 10:53 AM Reply Like