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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1040)	11/21/1999 6:17:00 AM
From: Gator II	Respond to of 1438

Zeev, I will try to shed some light on Genzyme Transgenics (GZTC). It is a leader, perhaps the premier company, in the development of transgenic medicines i.e., the production of genetically engineered proteins from the milk of mammals for the purpose of human medicine creation. Their proprietary processes include the implanting of a human gene into a milk production mammal and subsequently separating protein contained in the milk of that mammal from the fluid. GZTC's animal (primary) of choice for this function is the goat. The company's principle stockholder is the major biotech firm Genzyme (35%+/- ownership) and it is they who are financing the buying in of the floorless convertible at a 15% premium if the convert holders do not exchange for common stock within five days from their notice to fish or cut bait. The announcement re the calling in of the floorless was made on Monday of this past week. After meandering, primarily downward less than a half of a point this past week, the common stock price jumped a point yesterday. Interesting to note that GZTC opened Monday on the news of the convertible buyout at 7 1/16 and closed yesterday at 7 7/8, within an 1/8 of the high for the week on record volume (recent) which was almost 7 times it's average daily volume. GZTC has a major drug in phase III clinicals that is anticipated to receive the FDA's blessing any day and may be the catalyst that is behind the timing of the convertible's recall, imo. On the Yahoo board there is a series of four posts which detail by excerpt (apparently cut and paste) the relevant passages from the company's just released 10-Q. The excerpts are accurate as I've double checked them against the SEC filing. They begin at the below url. Fwiw, I've followed this company for a couple of years and after taking an early bath (after the floorless was issued the common dropped, over time, from the low teens to the low single digits), I bailed around 8 and then successfully traded it several times below five. This week, I bought it back and am now long pending near term developments. The url mentioned from Yahoo's GZTC board, message #2663 is as follows: messages.yahoo.com d=2663