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Biotech / Medical : Keravision(kera)

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To: wily who wrote (311)1/11/2000 10:27:00 PM
From: Phil  Read Replies (1) of 338
 
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>>a gradual withdrawal of the short interest would maintain the price at current or slightly higher levels.<<

My experience with heavily shorted stocks is that rallies retrace to a high degree -- some quicker than others -- probably as a result of shorts re-entering.

**Perhaps the difference in our opinion relates to the speed at which the short covering occurs. If we have a too rapid run-up, you are probably correct about retracing. If the short position is covered gradually, i believe we will see a relatively stable price rise with little sustained back-sliding. I'm ok with either scenario.**
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>>there are a lot of areas within the realm of KVI that have the potential to produce strong, surprising, positive news<<

Like what? The procedure numbers are bad and that's put a strain on proctoring (not enough procedures to get doctors proctored in one session) which in turn has put a strain on training (staff is focusing on proctoring).

**Your statement that procedure #s are "bad" is simply incorrect. The strain on proctoring is a result of training 600 idocs instead of the anticipated 200.
As for surprises...well, that is why they are called surprises. No one expects them.
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>>The upswing in institutional ownership also can be interpreted as positively supporting this proposition<<

Institutional ownership swung up to over 40% and then back down to 30% after the revenue warning.

The only way I could see this move sustaining is if there is an offer on the table -- something I am suspicious of, but I'm taking my chances.

**I don't think a buyout is an option at this point. JMHO.

Institutions now own about 35%, up from around 20% six weeks ago. **

Good luck,
Phil
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