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Biotech / Medical : NSIX -- Neuromedical Systems, Inc.

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To: Larry Fahy who wrote (35)10/11/1997 12:06:00 PM
From: David and Elena Krikorian   of 137
 
Larry,

Interesting question regarding the selection of a new CEO and the impact on stock price. One example that comes to mind is Sunbeam's hiring of Chainsaw Al. I think SOC's stock went up 4-5 points when the made the announcement.

The stock is moving higher for a number of reasons (in my opinion):

1. Much cash in the bank
2. Promising technology
3. Undervalued relative to the competition
4. Goldman owns 30%
5. Company is searching for a new CEO (and maybe close to finding the right choice).
6. Small caps are in favor and medical device stocks are gaining momentum.
7. Stock is way way off it's high.
8. Stock is still heavily shorted.
9. Positive news releases have recently come out (including New Yorks Post article).
10. One brokerage house has put out an intitutional buy rating.
11. There are takeover rumors.
12. Blue Cross/ Blue Sheild is doing somthing with NSIX.
13. PAPNET is on the verge of becoming "standard-of-care"
14. Revenues are rising (earnings are due on the last Thursday of Oct.)

In my opinion, this stock trades higher in the coming weeks.

Dave
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