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Yes, because not only does it not run out of money, it now has more money. Personally, I invest in companies to make money - why do you?

I don't care how great a company's technology is, if it runs out of money, the shareholders will not end up owning much of anything. If the company has to obtain more capital on unfavorable terms, the shareholders end up owning less.

Given the choice between a two biotechs with equally promising pipelines, but one will run out of funding in 1 year at its current burn rate, while the other not only is able to finance all of its development off of interest income, but actually is able to increase its cash position, which would you prefer to own?

Ask a couple of the dot.coms that went belly up this year whether they would have preferred to be able to finance thier buildout from net portfolio income insted of capital.

Also, I believe it generally bodes well for ABSC management that they have seriously beat all earnings estimates for three quarters, and managed to turn a profit before they even fully develop and launch a product - now that is cost control and capital management that gives me comfort.

And by the way, its not Wall Street smoke and mirrors, its ABSC's own smoke and mirrors, that was the offical company press release.
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