There was a major influence in the sell-off in LIPO's stock the last three days that I only just learned about from the Yahoo thread. Here's the link and the message below:
messages.yahoo.com
I recommend that you pay attention to that thread. Discussion is good and there are several very knowledgeable physicians who contribute and are LIPO longs. Bezagre and Michsal75, who is a physician, have the most insightful and always reliable observations about LIPO and its drugs. Because of the following, I have decided to create a trading position in LIPO stock in addition to my long term LIPO holdings. Avalon can depress the stock for a day or a week but will have to cover before the FDA meeting in my opinion. I strongly LIPO's stock will be significantly higher as the FDA meeting approaches and much higher upon approval.
Avalon Research Group...
by: BEZAGRE 3144 of 3151
LIPO is currently being raided by a "company" named Avalon Research Group who I personally have never heard of.
They seem to be in the same class as our previous "friend" Mr. Swift at Bigelow & Co.
Two days ago they put out a "research" report which apparently was sent to all their followers and to institutions that hold positions in LIPO. Once again, this company has not done any due diligence and has never contacted anyone at LIPO before issuing
their report. In Tuesday's release, they state that Abelcet sales
are doing poorly, and reiterate the same old story about how bad
of a drug EVACET is as PFE would never give back the rights to a good product. They state that the chances of EVACET approval are minimal and therefore LIPO stock should be sold.
I called LIPO late Tues. and was told that institutions holding
LIPO stock were also calling concerned about this report.
Apparently, Avalon Research previously established a short position and now has an agenda to profit from it by pushing the stock down.
Shortly after LIPO yesterday morning announced the BMY Taxol studies, Avalon released another report stating that clinical trials with major pharmaceutical companies does not insure success for a developing product.
They finish by repeating that the odds for EVACET approval are quite low and they maintain their sell rating with a target price of $10.
Once they scare enough investors they will cover their short positions and profit from this manipulative move. I can't believe that this is legal and ethics is a whole different story.
But, this is the world of Wall Street where this kind of stuff happens all the time. LIPO is soon to be going in front of the FDA panel for approval of EVACET and companies like Avalon are taking advantage of this.
I remain extremely confident that EVACET will gain approval and will be a successful product for LIPO.
The only good thing to come of this is that it does provide another opportunity to buy the stock cheaper.
Sept. 16th is fast approaching, I guess we will have to continue
stomaching this volatility for a while longer. As LIPO shareholders, we should be used to it by now. But, it isn't easy.
Good luck to all.
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Posted: 8/26/1999 9:04 am EDT as a reply to: Msg 3141 by cyou299
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