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Biotech / Medical : SABRATEK CORP (SBTK) -- Ignore unavailable to you. Want to Upgrade?

To: tom rusnak who wrote (326)	7/11/1999 10:06:00 AM
From: mod	Read Replies (1) \| Respond to of 487

Tom, I suggest you reread some of the earlier SBTK posts by Pluvia, with his promises of auditor resignations and trading halts. Never happened, and the stock is right back where it was when he first posted his "warnings" here. The only people who lost money are his "group", who might have shorted the stock, but more likely bought puts and/or sold calls. He does inform his group in advance of telling the rest of his buddies on SI, so if you really want to know the upcoming "news" in advance, just join CRAP (Committee Reporting as Pluvia). Interesting you should mention options. It appears to me that all Pluvia is doing is trying to salvage his July option positions, which are about to expire worthless (long puts) or with big losses (short calls). So he is likely to try to post more warnings between now and options expiration. I do have a question for anyone (short or long) as to the options positions in SBTK. There is a large open interest in out-of-the-money July puts (4,000 contracts). Also in in-the-money July calls, most of which are also likely to be short positions. Option MMs would want to hedge all those contracts, right? By selling some portion (I've heard 1/3 is typical) of the stock those options represent short. Once those positions expire, they no longer need the hedge, so they will cover those shorts. Because of the large July positions, it appears to me that the MMs might be buying back at least 100-200k shares of SBTK after the July expiration. Anybody know if this is correct? If anyone has a better understanding of how the MMs hedge, and the likely results after July options expiration, I'd like to hear it. mod

To: tom rusnak who wrote (326)	7/12/1999 1:36:00 AM
From: Swanny	Respond to of 487

Whose lead are you going to follow here? Who do you think has done more due diligence? Charles Stewart, a man who has 15 or 16 million dollars invested in the company and continues to buy even after Pluvia's and his pals' allegations were announced. Or Steven Keyser, a convicted criminal and known shill of the shorts. Mr. Stewart, who I'm sure has a pretty good idea of what really is going on at the company, obviously thinks he is buying the stock at bargain prices. In how many of Pluvia's successes did people "in the know" take large positions in the company after he made his allegations? The short position continues to grow, the float continues to get smaller, and the stock price is moving higher. Who do you think is going to get screwed? Who do you think will do whatever and say whatever they can to get that price down? Don't let Mr. Stewart get all the cheap stock.