SHAMAN PHARMACETICALS - SHMN - U.S. OTC Message Board

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Biotech / Medical : SHAMAN PHARMACETICALS - SHMN - U.S. OTC

SHMN 0.001000

-9.1%

1:54 PM EST

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To: MUDMAN who wrote ()	7/11/1998 2:16:00 PM
From: Rick Bodinus	Read Replies (2) of 69

Taipan Hotline 10 July 1998 Shaman (SHMN) looks like it has found a bottom. The stock is rebounding nicely after hitting a low of $3. It appears that all the sellers are out of the stock. Assuming that the sellers have been flushed out, Shaman should head back towards $5 in technical trading. Since there's a massive short position of almost 1 million shares, short covering alone should pop the stock on any significant positive news. Taipan believes that Shaman is very close to closing a marketing deal with a large pharmaceutical company - the catalyst for an explosive rally in the stock. Treating the diarrhea of AIDS patients is potentially a hot, if visually disgusting, story - it's just a matter of time before a positive story on Shaman appears in the mass media. Since Provir has a Net Present Value of $11 per share, there's a lot of room for the stock to move higher. This factors in zero value to the diabetes and anti-fungal products. Since R&D accounts for 70% of annual cash burn, Shaman is reasonably efficient in investing capital. Considering the caliber and reputation of Shaman's top scientists, it's safe to assume that Shaman's R&D has as at least as much value as any other biotech company. On an enterprise value/5 year cumulative R&D multiple, Shaman is dirt cheap at just 0.8 vs. the industry average of 5. No matter how you slice it, S haman is cheap. Use any weakness as a buying opportunity. A huge rally is imminent.

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