Roger: The DJIA has been in a side-way pattern for the past several months. This pattern, combined with heavy volume, normally has bearish implications because it has the look and feel of a genuine distribution. However, being an election year and with the secondary stocks already down 50%, chances are slim for an immediate decline. This decline will probably be postponed until 1997, as outlined in my Vision (Posting #144).
Roger, when you step back and look at the DJIA chart WITHOUT focusing upon its price/volume details, then you begin to notice a series of "time windows" which take different shapes or durations. If you use these windows to map the remaining events of this year, you will see that time is running out for this correction. The general market HAS to move in an upward bias towards the November landslide victory and the early January Effect in December. This has NOTHING to do with this Friday's wage reports. Now, I hope you begin to appreciate the art of tea-leaf reading.
PR means the ability to keep the existing shareholders and to entice new shareholders to take the plunge by enhancing the investors' EXPECTATIONS of NMPS. Since you asked, I have a few suggestions here:
1. Replace the entire PR staff with proven high-pressure used car sales persons. If these folks can push lemons and make a decent living out of it, imagine what they could do in marketing real oranges (NMP-22) to the innocent public.
2. Pay some analysts to write one-sided bullish reports, and distribute these reports to the baby boomers and other investors.
3. Obtain the names of all the patients that had bladder problems and send them the sales brochures of the NMP-22 kits.
4. Approach all the CFOs of the HMO, and provide them with the cost saving analysis of the NMP-22 kit vs traditional procedures. Contact the administrators of all hospitals, and do likewise.
5. Tell investors what's going on within Matritech. Even a re-hash of old news is positive. I'll bet NMPS will jump at least 3 points if Mr. Chubb drops a hint that Matritech may have found a new application for their test kit: NMP-22 detects colorectal cancer using quantitative analysis of the patient's fart.
6. Direct mailings, posters, radio interviews, TV shows, Internet hypings and others to heighten the public's awareness of this new technology.
7. Urge Mr. Chubb to frequently visit the executive washrooms of Merck, Abbott Lab, Johnson & Johnson and other big medical outfits. And after coming out with a relief look, walk quietly out without uttering a single word. Let the press make wild guesses and speculate the purpose of these visits and what had happened behind closed doors.
8. Then, leak out a rumor that Mr. Chubb is on the VERGE of getting a promotion: from the CEO of a micky-mouse outfit to the Divisional CEO of a multi-billion dollars biotech behemoth.
9. Make bold earnings/sales forecast. On the surface, this sounds dangerous, but further analysis indicates that smart companies often navigate through rough waters by shifting the blames on new product development cost, currency fluctuations, unforeseen third party hiccups, facility expansions (for bigger washrooms) and others. And what's more, they often still make bolder and rosier forecasts based on the EXPECTATIONS that these past problems had been burried. Look at it mathematically (Hi Ram: I need your help in the area):
No rosy forecast = share price stay even
With rosy forecast* = share price goes up
Rosy forecast backfires* = share price declines
Rosy forecast backfires* = share price creeps up to the pre-declined
with believable excuses* level (dead cat bounce)
Rosy forecast backfires* = share price takes off on false hope and
with believable excuses* wild imaginations (assuming our used-car
plus bolder forecasts* sales persons do their job)
Therefore, rosy forecasts are GOOD! (especially if you are a short-term trader. For the long term, every current surfers will be DEAD, and that's another story)
After Matritech's PR dream team has turned the innocent investors into wild-eyed enthusiasts and greedy analysts into mouth-foaming
loud speakers, then and ONLY THEN is the proper time for PPO!!!
Mr. Chubb, are you listening?
Regards.
Note: Roger, feel free to sent him a copy if he is not. Thanks. |
