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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (3286)	6/14/1999 11:23:00 AM
From: Bob Swift	Respond to of 10280

Big fish starts feeding, 57K just passed at 63 1/2 ask. eom.

To: David Howe who wrote (3286)	6/14/1999 11:35:00 AM
From: quidditch	Respond to of 10280

SEPR and market valuation. David, I hope the storm doesn't require FEMA disaster relief . In addition to the SEPR-specific potholes that have befallen the stock and SEPR longs, prompting a re-evaluation of the appropriate discount rate to assign to a future earnings stream that has its share of time and event risk, it appears that the market as a whole has begun to exact a higher price (with associated lower stock prices) for the risk implicit in putative future earnings streams. This is evident in the cooling of the net fever. Whether it is a function of the c. 75 BP move up in rates since December (in October or so, long bond was at 4.9), or clouds beginning to develop in the goldilocks mentality (stock prices vulnerable, specter of inflation, recoveries overseas) or a more complicated and contested international environment, the market has become less blithe and sanguine about future stories unless their validation is evident here and now. SEPR has validation in the collaborations, but the current costs and the pushing out in time of the earnings stream now weigh more heavily on the market. Regards. Steven