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Biotech / Medical : Lidak Pharm. [LDAKA]

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To: John Zwiener who wrote (72)1/29/1997 3:34:00 AM
From: luis a. garcia   of 1115
 
Bud picked several stocks for 97 which he feels are not extended at this time and will offer people the best and safest opportunities..
LIDAK for sure is one of his favorite picks, he considers it a speculative risk but not a really bad one, Essentially LIDAKOL should happen this year. Apparently the FDA required the placebo last year to have the same characteristics as the remedy. Well how do you take the active ingredient from the compound and effectevily neutralize it?.
Not very well. So apparently the comapany has worked with the FDA to have them accept a sure fire alternative guaranteed to be the real sugar pill...this time.. his time table is late April for news etc.. and others are saying high summer..so.. News will move this stock.
I think the company has a good technology and a pipeline with other products but nobody is dwelling on value..everyone is keying on products.
Other picks were: FPA medical which is aquiring physicians and will become a billion dollar comapany.. bears researching..
and Sunrise Medical which is a Warren Buffet play on bad acounting by a small subsidiary giving an otherwise good solid performer a 3 mile island black eye.. the company has taken remedy and about got rid of that subsidiary so he feels the crud will wash off in time.
Foodmaker or Jack in the box is a play on the company recovering from the food poisoning ecoly and colllecting from their meat supplier VONS
(I think)but same store sales is been on the up also....
He likes Data works DWRX. and CN Bioscienses CNBI and I don't remember why...Nationally he picks Sierra Semi (Sera). Kmart we all know the story there..apparently the stock is being accumulated.. Rally's and Van's famous for shoes... a global company making trendy shoes.. again
he tries to pick stocks based on 4 criteria.
1 is Revenue, 2 is Earnings 3, institutional following, 4 is weakness in the stock price.

He showed how a stock that is being accumulated runs into periods of weakness in which the price floats down to retest a previous low and that is what he uses as an entry point. Then the stock rallies but this time because it is in stronger hands the price rises quickly and achieves higher levels. As examples he used KULICKE and Sofa. Klick and ALDILA. ALDA.

He stressed that you can hold the best stock around but if the stock is undiscovered by the institutions then you are just holding on to potential as opposed to dynamic ...securities..

His method produces good results, and generally rewards patient investors. Seldom does anyone get the right timeline. but generally he
is on target if you are willing to stretch the timeline ie; give it a little time.. and don't place all the eggs in the same basket, then you have a good chance to do 40% or so in the market.

luis
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