Ariella: As usual, thanks for a fine summation on the outlook for PARS. It is indeed a positive one thanks to much good work by the company and its management. Yet, I wanted to note a number of aspects that give pause and will tend to restrain a steady upward trend in stock price. First, there are many low cost shares that will be coming into the fray over an extended period from conversion, warrants and options. These will be exerting downward pressure for the foreseeable future. Second, we have authorized almost 20 M shares over current projected levels. What will happen to those shares and why we were asked to go from 50 to 60 M isn't clear. Nor is it clear that we won't be asked for a further increase near term. Management seems to have a penchant for dilution. Third, there have been short sellers in PARS over quite a long period. Short sellers in stocks with prices in the $1-3 range are generally not a good omen. More to the point is the accuracy of that short selling. Whenever the shorts have increased, the price has dropped soon thereafter. While this has given us an opportunity to do a bit of trading, it opens some questions I'd prefer not to have. Fourth, managment has not yet articulated a long term vision and strategy for the company. At some point, this will be necessary. I'm just not sure what kind of a company Pharmos is. The strategy appears to be one of finding leads in Israel and then pursuing them opportunistically. This could wind up as a hodge podge, if we are not careful. Where we're going and how we're getting there needs attention.
Regards,
Arnie |
