NEWS

Inquiring Minds

May/June 1999

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Diet Pill
A drug to treat obesity may be one step closer. Stanford researchers have discovered a mouse gene linked to appetite and activity. Mice lacking the mahogany gene eat more and exercise more than normal mice. Gregory Barsh, an associate professor of genetics and pediatrics, says that some obese patients may have a defect in the human counterpart -- the attractin gene -- and that drugs might be developed to correct the problem.

Eco-Strife
Environmental problems will likely cause global unrest in coming years, according to a report by the Institute for International Studies. Researchers led by environmental science professor Donald Kennedy and institute director David Holloway predict that population growth, climate change, resource shortages and land use could spark political turmoil.

Buy Low, Sell High
Do securities analysts really know what they're talking about? Short answer: yes, according to a study by Business School associate professor of accounting Maureen McNichols and three colleagues. They found that between 1986 and 1996, an investor who followed analysts' average recommendations would have earned an annual return 12 percent higher than stock indexes like the Standard & Poor's 500. Unfortunately, transaction costs would wipe out any such gains for small investors.

Games Patients Play
In the future, children diagnosed with diabetes may get a video game along with instructions on diet and insulin. Researchers at Stanford and Kaiser Permanente found that a game designed by Mountain View-based Click Health can train kids to better control their condition. In a six-month trial, the 59 children with diabetes who played Packy & Marlon needed 77 percent fewer doctor visits than those who played a placebo game.

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