Text from my post yesterday(Todays news letter from above (Marcus Padley.Tollhurst Noall) is full of talk of a biotech surge.....not that we didn't know...but is interesting to see advisors starting to push biotechs............Apart from SIE watch AVX as well)
And the same sentiment is all over the Age today.
BIOTECHS ARE BACK (Full Disclosure column)
NOW that the temperature gauge attached to the biotechnology sector is going up — thanks largely to CSL's vaccine triumph and a good dose of bird flu hysteria — it's a safe bet that companies will no longer find the door is slammed shut quite as hard when they start rattling the old fundraising cans.
While improving sentiment means that share prices go up, it also means that biotech bosses are more likely to call their trusty advisers with a request to drum-up some extra cash.
Eight months ago, brokers were declaring the window closed for capital raisings, particularly for new floats.
But now that appears to be changing.
Mandy McEvoy, corporate finance adviser at Lodge Partners, said fund managers were already looking for good value opportunities in the listed market, and had been for several months.
"The recent strong share price appreciation of stocks such as Biota, Pharmaxis, Alchemia and the newly listed Evogenix also means liquidity has increased, which bodes well for institutional interest and investment," she said.
In his daily newsletter, stockbroker Marcus Padley yesterday provided an ominous warning about what can happen when a bubble inflates and opportunistic share issues begin.
" Chemeq did it," he said, noting the pharmaceutical drug makers share's jumped from $3 to $7 in its last growth cycle.
But then the bubble burst. Chemeq shares last closed at $1.13. It's all in the timing (plus other articles etc0
SIE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
