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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (6537)	6/11/2002 1:36:48 PM
From: Biomaven	Read Replies (2) \| Respond to of 52153

Does the GNTA stock buyback just encourage short sellers? Generally short sellers have a pretty short-term outlook. I feel the existence of this buyback plan increases the risk to the shorts. It tends to support the stock in the short term while perhaps harming the long term prospects, particularly if their programs are not very successful. Note these buybacks sometime end up being more threat than reality - the program is announced, a few small repurchases are made and then the whole thing is forgotten about. Bottom line though is that I think this is bad for the shorts in that it increases their risk. They never know if the company is going to aggressively purchase stock. Some repurchases by the first-tier biotechs would probably be a good thing here. AMGN has done this for years to good effect. Peter