To: Return to Sender who wrote (643 ) 11/9/1999 1:12:00 AM From: Tagore Read Replies (2) | Respond to
I am very long on this stock. I believe that the management is honest but has held back adverse information in the past. Management repeatedly said they were ready to file an NDA on Ziconotide earlier this year, but then, at the last minute, it turned out that the FDA required them to do an additional 300 patients. I really believe that this information was out into the institutional market prior to being publicly announced. Then, the stock began acting funny and the shorts were all over it but the management said there was no problem. Suddenly, they announced that the SEC had been investigating their accounting and that they had known about it for months but believed it was "routine" and so didn't feel the need to tell investors. They also said their would be no revision. The revision was certainly small, but there was one. Moreover, I believe some knew and made money on shorting the stock. Finally, they have reiterated over and over that they were going to file or have approved several new drugs, among which was the migraine drug. Again, the stock appeared not to be doing well for apparently no reason. Then, we find out (placed in a quarterly report that meets expectations) that there will be at least a year delay. The latest company release even talks about 2002. This is my largest holding and I am getting agitated just writing this but I am getting to the point that ELN is a "show me" stock. Unfortunately, I am in so heavy I simply have to wait it out. I believe the stock is worth twice today's market price. Also, I believe that Ziconotide is the short term key. They need to file before year-end and get fast track treatment. Otherwise, why wouldn't the market simply wait and see what happens. Also, I believe we could take a hit if there is no fast track. In sum, I believe that the management may be ok but I am nervous that they cut corners with more than the accounting. Only time will tell. Reviewing this, I have scared myself! William, write me something calming.
