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Biotech / Medical : Biotech for less than a buck. -- Ignore unavailable to you. Want to Upgrade?

To: RWReeves who wrote (574)	6/22/2000 5:29:00 PM
From: RWReeves	Read Replies (2) \| Respond to of 743

Every now and then, the market does some pretty stupid things. This appears to be one of them. Its also a LT$10B prospect. FSH, which you know and love as Fisher, seems to me to be one of the potential beneficiaries of the gush of capital into biotech earlier from this year. Picks and shovels for miners kind of thinking. OK so FSH offers to buy up a medical distribution company PSSI for 11.86 a share. Market spanks FSH, down 25%. Market spanks PSSI down 25%. Now I've been watching (lusting after?) FSH for a few months waiting for a dip to get a position going. Got one today. Also bought PSSI. If I can get an 11.86 stock for 7 bucks plus, seems like a good deal. CEOs of both were on a call this AM saying this is a good merger. I know PSSI missed their 4th Q target and everyone expected to sell them at 15 to somebody but to sell them off to 7 and change as punishment? Decision tree: FSH buys PSSI successfully. $11.86 Somebody outbids FSH. >$11.86 FSH withdraws offer. (Speculate) that market adds back 25% it took away. The only people that seem to have priced this deal right are the options folks (PSSI, no FSH options I know of). Options seem to say "this deal will happen at this price represented". So take a look- two shots for the price of one. My targets for FSH (3 year) $100. Currently 27. My target for PSSI: $11.86 or better. 6 months. Current $7 and change. Disclosure: I now own FSH and PSSI. Caveat Emptor. Your Mileage may vary. Send no money. RWR