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Biotech / Medical : Zonagen (zona) - good buy?

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To: Michael Bidder who wrote (1822)1/17/1998 12:33:00 PM
From: Cosmo Daisey  Read Replies (1) of 7041
 
Michael,
This isn't a short squeeze. This is a classic Business Week stock.
The Business Week stocks are front traded for several days before the publication by insiders and their friends, the price runs up and the magazine attracts buyers looking for ideas and they trust Business Week. The new buyers are buying from the Business Week crowd. A book was written about the many sources of BW stock information. One New London Ct. broker was meeting a Donally Printing Co employee for breakfast in the town where the mag is printed and buying him breakfast and giving him $100 a week for the mag the day prior to publication. Other employees took mags home before pub date also. There are so many holes in their security its a joke.
Business week doesn't do any analysis of stocks they mention to find out if they are "a fraud and a scam" because they are in and out so quickly. However, BW readers are long term according to survey and they get stuck with the dogs. There a quite a few trading systems based on the BW model and they buy heavily on the day of publication and dump a couple of days later for a small profit or loss. Again without dilligence. The BW model? Look for small price stocks mentioned in an article as being in the same business as the article focus company. In this case Pfizer with their billion dollar ED drug that works and ZONA with their generic offering that doesn't.
Cosmo
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