May 19, 2008

Mankind: A Difference o Opintion

The Fool has a few paragraphs on Mankind today:

"MannKind clearly falls within the realm of speculative investments, that doesn't mean it's not also a value play ... Bill Miller, the legendarily unconventional value investor and owner of the mutual fund world's longest streak of outperforming the market, recently highlighted MannKind as the company his fund owns that has the greatest potential. And he was buying shares at a significantly higher price than is available today. Other value-oriented investors, including the fine people at Morningstar, also see the stock trading well below its intrinsic value. [Emphasis added.]"

In contrast, Zacks had an article on Mankind from May 6, where they say to sell the stock to $1.50. They also had this to say on the stock:

"Even if TI makes it through the approval process, we do not expect the drug to reach the market before 2011. Considering the $1.1 billion in cash burn incurred so far, coupled with the high SG&A costs necessitated to strategically position and distinguish the drug from other therapies, we do not expect the company to achieve profitability without TI achieving blockbuster status a status seemingly out of reach in the current market scenario."

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