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Biotech / Medical : Summit Technology (BEAM) -- Ignore unavailable to you. Want to Upgrade?

To: chuber who wrote (1272)	7/22/1999 7:40:00 PM
From: HerbVic	Read Replies (2) \| Respond to of 1386

I can't say that I know any more about the subject, but one would assume that for an MM to sell at the ask, someone would have to step up to the plate and take charge of the equity shares in the company in exchange for the full cash value of the transaction. It could be an MM shifting equity from one account to another. In this case it would not matter what the stock did the following day. There would also be no effect on momentum. There is an effect on momentum at the time of the transaction, which might rule out that type of transaction. It's possible that there is at least one funds manager accumulating a large position in BEAM in anticipation of a future event. The sideways action of the stock in recent weeks would lend perfect opportunity for an accumulator. We can only speculate, as we'll never know, but it seem to me as if there is something afoot with this company. Selling 4 million shares to raise capital "to help fund the commercial introduction of the LADARVision system" is roughly the equivalent of an IPO backed by the future equity possible from accelerating the entry into that market. It's an excellent move if successful. The key at this early stage of development is to grab market share. With a superior procedure, one could assume that Summit Technology wants to build a massive sales force and get the word out to practitioners. Since the news of a 4M share sale didn't have much effect on price, it's possible that there is plenty of buying to offset the 4M share sale and once the shares are sold the bias will then be to the upside. BEAM reports earnings shortly. Will the earnings news drive the stock forward, or are we to see a typical eagles nest dive before this bird soars? HerbVic