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Biotech / Medical : Pharmos (PARS)
PARS 2.700+13.6%Jan 21 4:00 PM EST

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To: Ariella who wrote (3)10/29/1998 10:04:00 AM
From: Richard Huth  Read Replies (1) of 1386
 
Welcome in a new surrounding.

First of all I have to make a correction as I found myself misinterpreted on the yahoo thread. What I did say was: If we hope for strong demand by german investors, than PARS would have to be listed on Neuer Markt. But I do not think that PARS should be listed there. I think PARS has more important things to do than looking for an additional stock market.

Ariella, I think PARS is right in being concerned about negative reaction by some shareholders. Therefore I would not expect an upswing of stock prices after releasing the Q3 figure.

In my opinion it would be very helpful, if PARS would not only split up sales of Alrex and Lotemax, but doing so on a monthly basis (better would be weekly given the short period till now). If the market can see a positive trend in orders from week to week within the last 1,5 month, the reaction could be different. But without that data I expect the market will be a little disappointed.

Support could come after the road shows. But PARS still has the big problem of being an illiquid stock. At times like these this could keep some investors away, even if they find PARS an intersting opportunity. Right now the subject that counts most is liquidity. And PARS is not the only stock with the potential to become profitable next year. A stock like IMNX is in the same position, only with an higher market cap, more liquid trading, with less cash problems and aiming at a US$ 1,5 billion revenue (Enbrel for RA).

These are stocks PARS is competing with.

I hope I did not sound too pessimistic (if I would be, I would have sold my stocks, not bought them).

- Richard
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