Remembering Regeneron, and it's sure still around
Sometimes it seems that giving up on an opportunity that turns out to be huge, one that still made some money for you but far less that it could have, is more painful that actually losing money on a poor investment choice.
Regeneron is one long, that's long, term example. In the early 1990's a close friend of mine had made an unlikely career switch from being a free lance folklore researcher and writer to being a thoroughly self taught securities broker who of course passed all licensing requirements. At the time he worked as an adjunct broker to a firm that provided support to independent brokers, which was his only option at the time given his limited experience. He later became successful at established firms.
We talked frequently at the time, sometimes daily, as my banking role at the time involved working with equity investors as a flack for my firm. My friend was enthusiastically full of investment ideas in his new profession, often little covered stocks from Southern U.S. areas in which he had lived. A few of his suggestions were duds, but many had great potential, a few near term that were beneficial to me when working with him, but many that had longer term horizons. One was Cree, now well known but relatively unknown at the time, and with ultimate patience, perhaps more than he had, it was a great stock here both for gains and for trading activity. Another was the now famous Regeneron.
My friend regaled me with the talent at this small biotech firm that was working on cures for macular degeneration, colorectal cancer, lupus, and a host of other conditions in ways that were not understood here at all but had linkages. As understood here, if one cure actually worked the ramifications for it being applied to many other conditions was significant, really significant.
All that was interesting but, as they say, "Greek to me". What was fascinating was the list of unnamed to me scientists from the most prestigious research colleges in the country. Regeneron seemed to have an astounding collection of talent. In the early1990's it was an investment here and certainly with my broker friend, but it bounced around between $4 to $10 for quite a few years. It missed an important phase 2 trial on its first "breakthrough" drug. With limited resources here at the time, and limited understanding of the biotech field(still an attribute of my investing "skill", only going now with already proven innovators like Celgene rather than really high potential start-ups).
So by sometime around 1994 or 1995 it was goodbye to Regeneron here.
Around 2000 the stock apparently began to show some life, unknown to me since I no longer followed it, then it dived again in 2005, came back and held up relatively well through the great recession period, but what we are talking about is a trading range from roughly $10 to $50, not bad, until the beginning of 2012. Then it began to explode, as in explode positively. It now trades at around $250 and has been as high as $280 a month or two ago. Obviously some of its breakthrough drugs have broken through.
What did I miss? My broker friend maybe did too as far as is known here. Way ahead of his time on that one but, after 18 years, ultimately right in a major way.
While on the subject of pain caused by not staying the course, among those that got away over time, the recent big one is Chipotle. Decent money had been made on that one, but the old SNL Dan Ackroyd skit about the scotch tape store, their only product displayed perfectly, kept coming to mind. How long could this essentially one product eatery go on growing. While I did ok, $200 later I feel like a dope at times. The food is a value and I am a fan. Missed it.
One other big miss that never was benefitted from here is Priceline. Now I wonder, why if I believed in the Ebay model and have done very well with that, why was Priceline not in my crosshairs. There was no understanding here of the potential and of management's global ambitions and skills. Oh well.
Overall, there is not much reason to complain here. There have been some big gainers here over time that have been maintained and handled well, and from late March 2009 through that year there were more bargains than investable money here. What could be done was done, much of it harvested prudently over time while holding core positions.
That's all well and good, but the ones that got away still sting me at times. Oh that Regeneron!
Postscript: the header of Eyes Not Sold has a disclaimer. Please note that some of this post covers events more than 20 years back, and accuracy may not be perfect.
Regeneron is one long, that's long, term example. In the early 1990's a close friend of mine had made an unlikely career switch from being a free lance folklore researcher and writer to being a thoroughly self taught securities broker who of course passed all licensing requirements. At the time he worked as an adjunct broker to a firm that provided support to independent brokers, which was his only option at the time given his limited experience. He later became successful at established firms.
We talked frequently at the time, sometimes daily, as my banking role at the time involved working with equity investors as a flack for my firm. My friend was enthusiastically full of investment ideas in his new profession, often little covered stocks from Southern U.S. areas in which he had lived. A few of his suggestions were duds, but many had great potential, a few near term that were beneficial to me when working with him, but many that had longer term horizons. One was Cree, now well known but relatively unknown at the time, and with ultimate patience, perhaps more than he had, it was a great stock here both for gains and for trading activity. Another was the now famous Regeneron.
My friend regaled me with the talent at this small biotech firm that was working on cures for macular degeneration, colorectal cancer, lupus, and a host of other conditions in ways that were not understood here at all but had linkages. As understood here, if one cure actually worked the ramifications for it being applied to many other conditions was significant, really significant.
All that was interesting but, as they say, "Greek to me". What was fascinating was the list of unnamed to me scientists from the most prestigious research colleges in the country. Regeneron seemed to have an astounding collection of talent. In the early1990's it was an investment here and certainly with my broker friend, but it bounced around between $4 to $10 for quite a few years. It missed an important phase 2 trial on its first "breakthrough" drug. With limited resources here at the time, and limited understanding of the biotech field(still an attribute of my investing "skill", only going now with already proven innovators like Celgene rather than really high potential start-ups).
So by sometime around 1994 or 1995 it was goodbye to Regeneron here.
Around 2000 the stock apparently began to show some life, unknown to me since I no longer followed it, then it dived again in 2005, came back and held up relatively well through the great recession period, but what we are talking about is a trading range from roughly $10 to $50, not bad, until the beginning of 2012. Then it began to explode, as in explode positively. It now trades at around $250 and has been as high as $280 a month or two ago. Obviously some of its breakthrough drugs have broken through.
What did I miss? My broker friend maybe did too as far as is known here. Way ahead of his time on that one but, after 18 years, ultimately right in a major way.
While on the subject of pain caused by not staying the course, among those that got away over time, the recent big one is Chipotle. Decent money had been made on that one, but the old SNL Dan Ackroyd skit about the scotch tape store, their only product displayed perfectly, kept coming to mind. How long could this essentially one product eatery go on growing. While I did ok, $200 later I feel like a dope at times. The food is a value and I am a fan. Missed it.
One other big miss that never was benefitted from here is Priceline. Now I wonder, why if I believed in the Ebay model and have done very well with that, why was Priceline not in my crosshairs. There was no understanding here of the potential and of management's global ambitions and skills. Oh well.
Overall, there is not much reason to complain here. There have been some big gainers here over time that have been maintained and handled well, and from late March 2009 through that year there were more bargains than investable money here. What could be done was done, much of it harvested prudently over time while holding core positions.
That's all well and good, but the ones that got away still sting me at times. Oh that Regeneron!
Postscript: the header of Eyes Not Sold has a disclaimer. Please note that some of this post covers events more than 20 years back, and accuracy may not be perfect.
posted by John Borden at 5:54 PM
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