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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: put2rich who wrote (1766)9/11/1998 3:25:00 PM
From: Q.  Read Replies (1) of 2506
 
Thanh dao, re. HEB, I took advantage of the opportunity today to get out about where I got in.

Having read the Value Management report, which is quite lengthy, I no longer felt as confident in my assement of the co. as a low-quality biotech. The major thing in there that bothered me as a short seller is that the type of 2nd round of PhaseIII that they are presently in has in past never had any outcome other than FDA approval of the product within a matter of months after the beginning of the 2nd round. That's a degree of certainty about forthcoming favorable news that I don't like at all. Another thing that bugged me was learning that the co. had several years ago gotten a favorable ruling that their drug would be considered an 'orphan drug' due to having few patients, and then later on learning that more patients than previously thought have this 'yuppie flu'. That was a stroke of luck that supposedly will result in higher margins in the upcoming years.

Value Management also had a report on Turbodyne, which I also read. I'm 95% convinced Turbodyne is rubbish, but the status with the FDA is a kind of endorsement that I find fairly convincing.

The lock-up expiration is still the major thing that attracted me as a shortseller, but I simply hadn't done what I should have done, and phone up the co. to find out exactly when the lockup expires. I think if anybody wants to be short this stock, they should indeed phone and ask. The number is 215 988 0080, east coast.
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