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Biotech / Medical : IDPH--Positive preliminary results for pivotal trial of ID

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To: Brad C. Dunlap who wrote (528)4/2/1997 7:08:00 PM
From: Zoran   of 1762
 
Gentelmen,

Thank you for your insight into IDPH. You saved me a lot of research time. There is no need to be rabid. I have no intention to hype this stock in either way. Insider trading is one of my indicators and that's how I found out a few things about IDPH. I'm not a life scientist (thanks for your info I'll discuss it with my wife who is a life scientist). I enjoy trading options although I have to admit that trading options is not going to make anybody rich (I have a decent experience with a few tens of thousand trades).
On the other note, agressive growth funds, which invest into biotech are being clobbered these days. Even the rating of 1.0 cannot help in this regard. About ML starting covering this stock, my opinion is that analysts have their customers and their recommendations are according to customers' wishes. In the case of IDPH the case is a strong buy so ML customers can dump their shares.
About insider's ownership, in high tech stocks that is a definite minus since insiders always sell into strength. Maybe in the case of biotech stocks that is not a case anymore. It is true that executives in biotech companies make exorbitant money without a need for selling their options.
About the FDA approval, there is no need to rush if you know that it might come in the second half. Do you have any results from the phase 3 clinical trials that boost your optimism? I have invested in biotechs before and somehow I may have an erroneous impression that biotech stocks are the strongest at the beggining of the year and really weak during summer.
I only stated the open position as can be obtained from the CBOE. From my experience this means that the market maker felt comfortable to write those Oct. options at a nice premium. I hope we agree that the main incentive MM's have is to make money.
Thank you again for a lot of information I'll ruminate about and after the stock reaches lower teens I may go for those Oct. calls you find so attractive.

Zoran
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