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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (830)	6/18/1999 11:31:00 AM
From: arnie h	Read Replies (1) \| Respond to of 1386

Dr John: I'll give it a try. As far as the TA is concerned, PARS looks rather anemic. It is flirting with 3 year lows and has just fallen below even its weekly 150 day moving average. Falling below 150 day moving averages is never a good sign. About the best you could say is that every once in a while it tests around the 1 3/16 price and has held at that level repeatedly. So it seems to be close to a bottom. On the fundamentals side, the pace of revenues from the opthamology products is quite slow and well below what management predicted. We've not been treated to any explanation for the difference. We've been hearing rumors about a deal for HU 211 for some time. Nothing so far. And remember, the 3rd cohort has yet to be finished. The 200 shares of convertible translate to 200,000 shares as I recall so the price could be pressured by that at some point. And the company is popping 7M more shares into the hopper diluting us even more. Having said the above, I've joined you in adding to my holdings in the 1 3/8 range. Clearly, something is going on. The price spiked up quickly just a couple of weeks ago as if 'somebody' had to get out of short positions. Short sales showed a bit of a drop in the latest report and I expect a substantial drop in the next. My experience with PARS is that good news comes out about 4-6 weeks after the shorts depart. I'm simply assuming this tradition will continue. The fact that the price didn't head further south on the recent S3 filing seems to add comfort. Good luck, Arnie