Procept (PRCT): 50% rise on high volume. Why? Message Board

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Biotech / Medical : Procept (PRCT): 50% rise on high volume. Why?

PRCT 31.91

+2.0%

3:59 PM EST

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To: Douglas who wrote (285)	11/12/1997 3:57:00 PM
From: Daniel Shaffer	Read Replies (1) of 455

Hand to Mouth Financing Thanks, Douglas, for your feedback on the burn rate for PRCTD. It seems like they are really living hand-to-mouth with just-in-time financing. Further, the financing come from apparently patient venture capital funds (at the cost to us of continual dilution of our equity). Institutional investors are not known for throwing good money after bad, but I don't know the extent to which those buying PRCTD's preferred stock are doing so because they truly expect the company to succeed or because of "old school ties", namely the Harvard connection. Given the steep decline in share price, I would like to think that those at the top of PRCTD's management are "sharing the pain" by cutting out "perc's" and taking temporary pay cuts as a trade-off for more stock options. I have seen too many biotech startups where prima dona scientists blithely spent "other people's money" until it was gone, then walked away to look for a new project and new investors. Hopefully the top management of Procept has a stronger sense of stewardship.

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