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To: GARY P GROBBEL who wrote (3396)	12/24/2001 3:23:53 PM
From: Crossy	Read Replies (1) \| Respond to of 120411

Gary & all merry Christmas everyone.. rgrds CROSSY

To: GARY P GROBBEL who wrote (3396)	12/24/2001 3:30:11 PM
From: Crossy	Read Replies (1) \| Respond to of 120411

re: (QSC Questcor Pharmaceuticals) - Amex @ $1.91 Just saw you were watching it this summer. I found QSC this fall, really liked it and bought in around $1.30. Well today it posted a new 52 week high.. $1.91. Seems the Cavazza family is grabbing share by share My own reasoning behind this bigtime rise (buyer is Sigma Tau of Italy and allies) is that a future reverse merger of Sigma Tau (a 500m annual revenue big pharma) into tiny QSC (Amex listed) might be a viable option. My reposts from Yahoo to this: messages.yahoo.com The VALUE of QSC for Sigma-Tau by: CROSSY_2000 (31/M/Europe) Long-Term Sentiment: Buy 12/13/01 12:58 pm Msg: 4427 of 4697 To all here around.. Why is the CEO and majority owner of Sigma Tau buying QSC on any pullback and in fact taking out a huge position of shares in this process ?? What is the "VALUE" for QSC to Sigma Tau. One could believe that SigmaTau got more than a small position in QSC stock already. Warrants are out that could (and will at some pint of time) even increase their ownership. So why are Sigma's owners buying QSC stock ?? I have an idea why this might make sense. No special info here, but some amount of reasoning. Did you forget that SigmaTau is in fact a PRIVATE ITALIAN company, which is not small by any means ?? I have some second thougts when I see all the action going on. "Propping up" of QSC. Partnerships. Heavy buying despite owning large chunks already. My suspicion is that sigma Tau is ultimately trying to merge with QSC. But not now - after they have obtained a MAJOR EXCHANGE listing. Remember, $5 minimum requirement for NASDAQ plus some net tangible asset requirements. QSC got some good tax losses to offset for the future also (NOLs). The scenario I have in mind would connect all these pieces: propping up QSC, getting it to major exchange status while increasing direct and indirect ownership interest at the same time. Ultimately Sigma could well acquire the rest or just merge itself into QSC at a mutual benefical rate. Now why all this action ? Well, IPOs are costly. Underwriters collect hefty sums. If you got a "dependant" subisidary on a major exchange, say Nasdaq or NYSE, you could probably merge into it really quick. With this "backdoor IPO", Sigma Tau would get an exchange listing instantly. No underwriter fees, sort of a reverse merger. Now the qestion - is this a done deal ? I have no idea, to be honest. But it would make a lot of sense to me.. all the best CROSSY (a happy camper) messages.yahoo.com News out .. by: CROSSY_2000 (31/M/Europe) Long-Term Sentiment: Buy 12/13/01 04:13 pm Msg: 4451 of 4697 Well, looks as if the scenario I outlined some posts ago actually materializes.. several notes.. QSC is building the necessary salesforce to compete in chosen markets (specialty pharma). This gives birth to many opportunities of economies of scope - moving multiple products thru the same channel. Sigma Tau signalled today continued investment into QSC, transfer of US marketing rights to its (or indirectly controlled) products (brought US marketing rights to VSL probiotic product into QSC umbrella), and at the same time LIMITING ITS INVESTMENT in QSC to MINORITY STATUS !!. This is important as it implies NO CHANGE IN CONTROL. Right now SigmaTau ownership ceiling will be around 37% The additional warrants is another great piece of news. Unlike in many other situations the QSC warrants will surely get exercised but won't be sold. The converted shares will be closely held by SigmaTau.. Someone stipulated a buyout in QSC. No, no buyout, I don't think so. Sigma Tau seems to be using QSC as its "US base" to hold its future US marketing rights for their formulations. Who knows, maybe after QSC will be propped up enough to fit Nasdaq listing criteria ($5), maybe SigmaTau will merge itself into QSC, sort of a staggered reverse merger.. with this situation unfolding before my eyes I am planning to hold my shares longer, maybe 2 years. I want to see QSC moving to the NAZ (>$5) and the SigmaTau reverse merger that could happen if things turn out as I think they would. The $1.75 level will be taken out very soon. Look what happened to AMRN. Rose from $2 to $26 in a short timeframe... rgrds CROSSY messages.yahoo.com bymorestock by: CROSSY_2000 (31/M/Europe) Long-Term Sentiment: Buy 12/15/01 11:10 am Msg: 4510 of 4697 you asked "Sigma Tau is a big company, or so it seems. Why are they taking such an interest in little ole us?" My answer : Sigma Tau may be big but they are a BIG PRIVATE COMPANY. they are not listed on any stock exchange at all. QSC gives them a "distribution presence" in the US and maybe a future entity to reverse merge into.. rgrds CROSSY messages.yahoo.com shadow_43560 by: CROSSY_2000 (31/M/Europe) Long-Term Sentiment: Buy 12/15/01 02:23 pm Msg: 4515 of 4697 In response to your question "Why pick an AMEX listed stock" let me provide my reasonings.. 1) First of all the fact that QSC is AMEX listed NOW (!) is not bad at all. The AMEX doesn't have the $1 minimum bid price requirement that the NASDAQ has. My position here: as long as QSC had no real revenues to count on the AMEX is way more preferable over the Nasdaq.. 2) For Sigma Tau it didn't matter at all that QSC was AMEX listed. Any non-OTC listed (NYSE, AMEX, NASDAQ) entity would do fine for Sigma Tau if they wanted an organization to reverse merge into. The fact that QSC had no real revenues last year was the MAIN REASON why Sigma was able to obtain a 37% stake in an Amex listed firm for just a "few" dollars (less than $20m if I'm correct). If Sigma wants (and QSC management goes along) then QSC could become all SigmaTau could ever be.. just because Sigma wanted it that way. QSC performance is nice in this regard but quite irrelevant in a reverse merger context.. Now I don't know whether this will be the future of QSC but it is certainly an option for Sigma Tau's management and owners.. The fact that QSC had little cash and was Amex listed one year ago made it a "cheap target". Certainly makes sense. 3) Another angle: Why an Amex stock ?? Who says that QSC will always stay an Amex stock ?? You know the Nasdaq listing requirements .. $5 bid price and $5m net tangible assets for the NasdaqSC.. even more NTA for the NasdaqNM. That's another reason why I think $5 will be an achievable target for QSC in the mid to long term. Maybe more.. rgrds CROSSY