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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: The_Peach who wrote (790)	9/7/2000 9:24:21 PM
From: Paul A	Read Replies (1) \| Respond to of 19633

Biotechs are risky both long/short but people play them because the moves are violent and if your on the right side of the trade you can make a bundle in under a week.. Also, typically they are cash poor, and their partners have 5 other small speculative biotechs working on the same thing.. IMCL is an example of the 'real deal', but ONXX is still very speculative and the runup was mostly due to a short squeeze.. and 9-10 times the party ends after the squeeze and the stock just drifts lower and lower. Not to mention the potential for an offering which will hurt the stock, not to mention insider filings.. The more I look the more I like... Besides, if ONXX starts moving again Its very rare for these stocks to squeeze a second time.. RMBS is a rarity :) I think its a pretty safe to assume that wallstreet is speculating we will soon get wind of cash raising efforts which will hurt in the short term..

To: The_Peach who wrote (790)	9/7/2000 10:04:27 PM
From: Tom Hua	Respond to of 19633

Peach, you have to be brave to short a stock, any stock. Most of my trades this past month were short, and I had one of the best monthly returns ever. Today there're more than 100 biotech companies all claim to be working on curing cancer, the last time I checked there's still no cure. As a matter of fact, in the early 90s, there were about 1000 biotech startups, many were also working on a cure for cancer. 9 out of 10 became cancerous and have since disappeared. Investors lost tons of money believing in a wet dream. IMGN was a penny stock less than a year ago, what company fundamentals have changed to make it worth 20 times more? Nothing! What has changed is investors mentality, sector rotation, which will at some point be going against the biotechs again. The rise of biotech stocks between Jan and March was phenomenal, the fall from March to April was just as spectacular. Are they as hot as last Winter again? Not a chance. ONXX is a good example, 35 last month, 23 today. To me, biotech stocks are not for investment, they're trading vehicles. IMGN was a penny stock last year, and will be again probably next year. Regards, Tom

To: The_Peach who wrote (790)	9/7/2000 10:15:01 PM
From: Tom Hua	Read Replies (1) \| Respond to of 19633

Peach, IMGN's VP for Finance and Administration filed to sell 60,617 shares yesterday (already sold for more than 1 million bucks), after selling 66,000 shares last month at $10/share. She surely didn't think much of the "potential" for a cancer cure, did she? One smart lady who is in touch with reality. Regards, Tom biz.yahoo.com