Neotherapuetics possibly has a breakthrough drug - NEOT Message Board

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Biotech / Medical : Neotherapuetics possibly has a breakthrough drug - NEOT

NEOT 1.919

+4.3%

Jan 17 4:00 PM EST

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To: tuck who wrote (93)	4/23/2000 4:55:00 PM
From: Marty	Read Replies (2) of 204

Cheers Tuck, I suppose it could be done but NEOT isn't that easy to short as the shares are scarce. I've read that NEOT is on some kind of list the brokerages houses keep on stocks in short supply. Even if that weren't true, they would have to set up the scheme in a way to avoid getting caught. And even if they were willing to risk it, it doesn't mean that just because it is possible, it is being done. I mean, what is the basis for your suspicion that it is being done here, under any time line? That it could be done? It still doesn't make sense to me. They would still be working at cross purposes with themselves. Every dollar they drive the price down in their short deal, they lose on every share in their long account. And then, if they get more shares in the conversion deal, and they cover their short position, they have to hope that they didn't ruin the market for their long position. What happens to them if they, to exaggerate the point, drive the price down from 15 to 2 and convert and the market continues down to 50 cents? Now they can't unload their $2 stock or the stock they had at much higher prices. They are vulnerable on their short side the whole time to any kind of news announcement from Neotherapuetics that would create demand and move the price up. How do they know that isn't going to happen? To me, the simpler explanation fits, that they are investors who like the prospects of the drug. They basically want as many shares as they can get on their loan deal because they think the stock will go up but they also want to protect themselves on the downside in case the stock goes down. That I can understand.

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