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What OXGN Is Really Selling...

So here's the rundown on this new stock that's caught my attention-- OXGN. I think the company is severely overvalued and here's why...

1) The recent spike in prices to $5.00 levels was caused by news that their phase 2 studies were going just as planned... no major breakthrough here...

2) The company is burning through cash very fast! Like other biotech, executives are paid exorbitant salaries and cost cutting takes place in the form of reduced head counts....

3) The closest product to market is still not very close. It is estimated that phase 2 will conclude by the end of 2013 by which time the company will have very well run out of its cash reserves... or not (expect immense dilution)

4) The company has managed to rack up shareholder deficit of more than $20M since inception. Their 10-Q and 10-K clearly state that investors should not expect revenues for at least a few years... I think they made it very clear..

5) At the end of it all, if they approve their drugs, their target market is an orphan drug designated market (<200,000 people/ year)

I believe that the "Warren" Value of this stock is nowhere close to the high levels its currently trading at... over a week or two, expect prices to adjust to true value... good luck!