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Biotech / Medical : The Stock for 1999(Polymedica)PLMD(Medical Supply Co.)
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To: Sam who wrote (3221)3/23/2001 11:37:21 PM
From: Apakhabar  Read Replies (2) of 3414
 
Sam, it's still bad news. It's like anything else, the accusation sticks far longer than the acquittal.

I do think the stock will rebound big on Monday and next week in general. This sort of situation will hurt the stock not so much here as it will in lowering the price targets in the future. That is to say, where some big money might have had 75 as a target now they will unload at 50.

Still, Monday should be hell not for the 3.8 million shares short prior to today, but rather to the poor bastards who shorted the stock at 19 or 20 because of the extreme momentum. They would've made a nice profit had the stock not been halted, but now they're going to have to cover following PLMD's CC.

I think it's worth noting that a lot of the capitulation was due IMO to regulation FD. Because most of the analysts were in the dark their firm's traders had to think for themselves and, not surprisingly, they saw the negative momentum and sold and, more importantly, they did not support the stock. There was support at 27 1/2 and then 22 1/2, but I think this came from daytraders who subsequently took profits and/or bailed (I'm included in that total, although I am holding a stake purchased at 18 3/16).

Today was a windfall for the shorts, pure and simple. I'm sure many of them figured to cover during the last half hour of trading, just as any respectable long would take some profits after a 50% up day on a rumor that even if it's likely to be true is not TERRIBLY serious. Stocks don't go directly down without bounces unless they're Bre-X.

Have you any plans to buy Monday morning?
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