Why price going south?
I spoke with the Investor Relations director today, Jennifer Levine, I think her name was, and she assured me there was no bad news coming out about the company, things were humming along just fine, espcially her phone lines -- jammed with concerned investors and some brokers. The company believes a seller, probably an original investor, is unloading shares, but they don't know who or why. NOthing fundamentally has changed. she said the company is hoping to find a new CEO "within 3 to six months, hopefully 3." She also said the company's partnership program was doing superbly, and the company had conducted over 20 meetings since September with prospective partners. All went very well and people were excited. Also, at the end of the quarter, Cadus might be the first to receive a new screening something-or-other (sorry--I didn't get the details) from Axiom, which will probably result in a press release. But most interesting, there's a good possibility Smith Kline and Beecham may take a $5 million stake in the company after Feb. 25, which she said was public knowledge. A press release would probably follow. That would show good support from partners in company. The 5 analysts who follow Kdus aren't willing to stick their neck out yet with any support until the CEO is named. But once that business is done, she expects to see analyst support again. If you can hang on, and all this is true, 5 is a steal. Next week we'll see if the selling is over. Sooner or later, this thing is gonna take off like a shot. IMHO Steve |
