Is this an Opportunity?

A newsletter of Investor's Daily Edge carried this brief article- Ride or Slide: Enzo BioChem (ENZ), which is authored by Charles Delvalle. The company itself is of interest, given its potential to aid in medical breakthroughs and might be of interest to investors. Here is what the article had to say:

I recently got a letter from a reader wondering what I thought about Enzo BioChem (ENZ). ENZ is a life sciences and biotechnology company that provides diagnostic services to the medical community. Among other things, they are involved in coming up with genetic cures to illnesses like HIV.

When I look at their chart, I see that the stock has been falling since September 2007. Why? They've been losing about $4 million every quarter. This is not a good start.

But if you take a better look at the numbers, you see some glimmers of hope. First, they have $98 million in cash with no debt. At their current cash burn, this company could stick around for the next six years. That's a pretty good safety net.

Also, their revenue grew by 72% last quarter, mainly due to their life-sciences division. Did I mention they are trying to gain approval for a drug to treat HIV? They have several other drugs in testing as well.

With a company like this, you're taking a gamble. You're gambling on whether their drugs will get approved and whether their business will really pick up. If you put your money in a company like this one, you should be well aware that you may lose a lot of it.

If you're comfortable with that, then this might be a good investment for you. As far as what I'd do - I wouldn't touch it unless it breaks above its 200-day moving average on heavy volume, improves its financial results, or shows good results on their drugs in testing.

Final result? Let Enzo slide unless they meet these requirements.