Jim, I don't see SkyePharma as that strong of a company. in fact after having read their portion of the merger agreement, I'm puzzled how they will ever get to profitability. I was also surprised to see that their convertible debentures had a number of characteristics like a floorless convertible. Definitely not the best financing arrangement I've seen. In addition, the short interest increase in SKYEY tends to back up this assertion. I know that at least some of this is a hedge against DEPO shares, but the numbers are striking (17 days to cover).
Month Shorts Av.Vol. Ratio
02/99 111,583 6,449 17.30
01/99 89,635 3,615 24.80
12/98 62,084 17,388 3.57
11/98 4,015 3,204 1.25
10/98 1,178 2,638 0.45
Maybe we should start a skye thread to discuss this company further.
Regards
John de C |
