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Biotech / Medical : Neotherapuetics possibly has a breakthrough drug - NEOT -- Ignore unavailable to you. Want to Upgrade?

To: Marty who wrote (94)	4/23/2000 8:18:00 PM
From: tuck	Read Replies (2) \| Respond to of 204

Marty, I have no basis in fact for my suspicion, it's just that the terms of the debentures allow for the possibility. If shares to short are that scarce, then perhaps you're right. But if it is happening, trust me, good lawyers and accountants that know the game can keep the trail from being followed. The convert holders don't lose on the long side because they get to reset the conversion terms if the stock takes a dump. From the PR: "The debentures are convertible into common stock at $20.25 per share for the first 90 days after the closing. Thereafter, they are convertible at the lesser of $20.25 per share or 101% of the market price of the common stock as determined under the agreement." We'll have to watch the SEC archives for that "agreement." So if the stock goes up, they hold converts for ~$20. They get stopped out on their short, but make out on the converts. Stock goes down. Conversion terms are reset at what seems to be a bottom (particularly if good news is imminent). They cover the offshore shorts (creating some buying pressure to get the rally going) & convert, and wait for the price to go up, selling into the strength. Usually this takes the high volume generated by a big news event. If one isn't going to happen by itself, they are sometimes created. Rumors, touts, overamped press releases, whatever. You usually can't tell until it has mostly developed. Clues sometimes show up pre pump. If the stock has been weak and you notice news items in low circulation trade journals or in SEC documents that the company normally would announce on PR Newswire or some such, well you have a clue. Maybe they are holding the news back until their are a few more news items. When a critical mass of news has been gathered, then it is released in a cascade. Price gopes up on high volume, converters sell into strength. We hear about it when they file weeks later. Again, if it is that difficult to short, then this whole speculation is indeed likely an idle one. We won't know for sure until it's about over. But we'll get clues, and the final registration statement will have one of them soon. Cheers, Tuck

To: Marty who wrote (94)	8/16/2000 4:13:00 PM
From: tuck	Read Replies (1) \| Respond to of 204

Hey, Marty, You still out there? Not to rehash our discussion about the converts, but to follow it up. It's been more than 90 days, and look where the price is. Now let's look at the 8-K for those conversion terms: 10kwizard.com The Debentures bear interest at the rate of 5% per annum, payable upon conversion or maturity, in cash or shares of common stock, and are convertible into common stock at the option of the holder at $20.25 per share for the first 90 days after the closing. Thereafter, they are convertible at the option of the holder at the lesser of $20.25 per share or 101% of the average of the ten lowest closing bid prices of the common stock during the thirty trading days preceding the conversion. Emphasis is mine to highlight the conversion terms as updated since my first posts on the subject: Message 13484292 There's a lot more and I suggest a thorough read of Item #5 in the 8-K. Whether or not any manipulation is involved, I think the holders will try to reset the terms. When they do, get ready to back up the truck if you still believe. It could have quite a conversion rally, as the short (manipulation theory)/downside (for those who have other/no theory) is already started. Anyhow, that's what I'm waiting for with NEOT. Cheers, Tuck