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Biotech / Medical : Biotech vs. Shorts -- Ignore unavailable to you. Want to Upgrade?

To: biowa who wrote (127)	8/10/1999 12:23:00 PM
From: LLCF	Respond to of 427

<IMO before we go tar-and-feathering anyone who does a floating convertible, it might not hurt to realize that this is the only money that has been around to keep some of our beloved biotechs afloat at all.> In some cases I agree... in most cases I STRONGLY DISagree. These managements are saving their jobs at the expense of the shareholders. If a company is this hard up, IMO they should sell the company... put it up for sale with a big press release and at the least the shareholders will probably get somewhere near where it's trading in another's stock... keeping tremendous upside. The alternative is clearly not acceptable to me as a shareholder. I'm selling my ARIA. <hopefully they're making this choice based on realistic upside opportunity for the shareholders if the business continues as a going concern> Yes, agreed, unfortunately I'm afraid many managements aren't capable of making that decision, because they don't get it. Avoiding anything with a "floating strike" is the only way to go IMO. Let's face it... it's clear that these deals end up as stock... a dilution. Just sell stock please!!!! At least the public sees what's happening. They're just kidding themselves. DAK

To: biowa who wrote (127)	8/10/1999 12:36:00 PM
From: scaram(o)uche	Read Replies (2) \| Respond to of 427

Biowa: Your point is well taken. However, one needs to study the various paths to converts. Some damn good companies have fallen on hard times after their product candidates have failed in trials. Timing stunk, such that the failure compounded a lack of cash at a time where funding was tough. Hard to blame that (those) CEO(s). Berger, OTOH, made no attempt to garner money for shares when at $7. He is also known for having asked for too much from potential partners. Lots of guts and science, short on common sense. That said, I hope that Berger can recover. He doesn't seem the sort that is permanently afflicted. I'll therefore stop short of tar and feather. For now. Rick