Positive results the other day but price has dropped. Looks cheap now. DYOR

shares at 2.50/3.00 are good buys because there is almost no downside

Have to say that I think that statement is dangerously misleading. Consider: company X trades at 100/102 and you buy 1000; company Y trades at 3/3.5 and you buy 1000. Both companies issue a profit warning: Company X declines to 50/52; company Y goes to 1.5/2. The value of you holding in company X is now 500, whereas the value of your holding in company Y is now... 500.

I agree that the number of pence that a low-priced company can decline is limited, but in the vast majority of cases, that's irrelevant - it's the percentage difference between buy and sell that's important, not the number of pence (the exception being if you're spreadbetting at N/point, which you probably aren't on 3p/share companies). At 3p, a company can still decline 100%!

(Sorry ajren, I'm not looking to pick fights with you - we're just on opposing sides of a couple of disagreements)

A couple of other points (1) it's CeNeS pharmaceuticals, not pharmacy

(2) They had a number of good prospects (I haven't followed them for a couple of years, so don't know what the current situation is), but royally screwed over their shareholders about 18 months to 2 years ago with a deal that came close to wrecking the company.

They may now be a good prospect, but caveat emptor

Hi zzaxx99,
Great to read your letters. DELIGHTED to read opposite views so as I get a
balance.Fights are in the past as none of us enjoy negative emotions and
they distract us from the goal of making money.

Perhaps my way needs explanation.
Most/all of you might think it idiotic but I make money.
I know I keep referring to Corus but I have written a lot about it so I will
continue.
ALL my figures here are ALWAYS approx
I bought at 8 and sold at 14
I,after considerable research,concluded that the downside risk was low and
the upside huge.I was waiting for 20p but decided-incorrectly-to exit.
I buy a share,make a profit and get out quickly.
........
Wiggins-as mentioned b4.They are 4.75 and I have 250,000.I have researched
them in great detail.My hope is they go up and I pocket a nice profit.However,
maybe they will go down.
I -sometimes-like Corus buy/sell in blocks of e.g.30,000 as it is often quite
easy to see a trend of up/down and then make the 15 second decisions.
rgds to all and hope we make money

any further though of this compnay it drop a bit today? is it cheap to buy it now? It around 7.5p

Good morning all.Please read my messages of Oct 2 and 4.i.e.I would have
bought as speculation @ 3.50 - now they are 100 per cent up.I did not buy
as no info.I am not interested in anything e.g.percentages.I buy a share at
x pence at sell at y pence.I would have bought at 3.5p as a calculated risk.
The company was not going into liquidation and was basically healthy enough
to support 2.00 p at the worst.Therefore,risk 1.5 p and upside @ 3.50p huge.The
general City consensus is that it is cheap at 7.5pHowever,I have no interest
as I lost a lot in Pfitzers which I bought at 32 dollors a share-Not penny
share. I now never buy pharmaceuticals - apart from speculative above.
Always remember the more it - any share-rises the greater the downside and
less upside.I suggest no one buys it.However,I think it will go up a lot.

ajren, good spot in the first place.

However I am slightly confused by your last post, especially the "I suggest no one buys it", followed by "I think it will go up a lot"!

Also a good guide to fall back prices can be the amount of cash in such companies. With approx 8m in the bank this equates to approx 4p per share, so I think your 2p per share is a little on the low side.

The biotech sector seems to be recovering. More mergers and a few success stories in Alizyme and Acambis. Also article in the FT today about sector showing signs of life.

so does it mean now is not worth to buy to take a risk?

7.62p now
100+ per cent rise had I bought @ 3.5 p.This and Corus are typical of my
speculative buy - minimum downside/high upside - trading.However,I - like
everyone - back losers e.g.Rolls-Royce 6 months ago.I had bought for different
reasons.I made a small loss.If I had waited I would have made a huge profit.