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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: Original Mad Dog who wrote (3629)	6/17/2002 11:41:51 PM
From: Augustus Gloop	Respond to of 17639

From Whisper Number.com Martha - What have you done? As you may have heard socialite Martha Stewart the founder and CEO of Martha Stewart Living Omnimed has gotten wrapped up in an insider trading scandal with another want-a-be socialite and good friend Sam Waksal, the co-founder and former CEO of Imclone Systems, a biotech company which has been trying to find a cure or ailment for cancer. It appears 24 hours before a very negative FDA report was to be handed down on Imclones' promising cancer drug Erbitux, Sam, Sam's family and Martha got wind of the ill-gotten report and decided to start selling shares (lots of shares) of Imclone. Well, Sam has gotten arrested and Martha is now facing very serious allegations of insider trading. Martha has publicly stated that she knew nothing about the FDA report or that her pal Sam didn't tip her off about the negative report. She claims that she just happened to unload her entire position in Imclone the day before the stock plunged. This story is just hard to swallow and our gut feeling tells us something is amiss. More importantly, as these stories usually play out investors learn that these transgressions are sometimes just the tip of the iceberg. We suspect that in this case - things could get worse for Martha and Company. And then to make matters worse the insanity looms even larger. In comes Wall Street analyst Alissa Goldwasser of William Blair & Company who pounds the table for investors to buy shares in Martha's company Living Omnimed despite the ugly allegations of wrong doing. It appears that either the brokerage or the analyst community just is getting the message of corporate corruption and cozy the relationships they have with that corruption. We imagine Martha will get her fair day in court but to suggest that investors purchase one share of this stock under these terms is simply outrageous. By the way if you followed her advice (Allisa G's) last week, you've already lost 25%.