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

To: Biomaven who wrote (7802)	1/24/2003 2:27:15 PM
From: Elmer	Read Replies (3) \| Respond to of 52153

Very OT Does anybody know of a site that compiles a list of stocks with the highest short interest vs. the float? This site viwes.com compiles a list of days to cover but I can't find such a list based on float. Thanks

To: Biomaven who wrote (7802)	1/24/2003 11:16:28 PM
From: rkrw	Respond to of 52153

<<So this was a "hidden" floorless. Wonder if there are any others like it lurking around?>> Press Release Source: Valentis, Inc. Valentis Completes Capital Restructuring Friday January 24, 8:20 pm ET BURLINGAME, Calif., Jan. 24 /PRNewswire-FirstCall/ -- Valentis, Inc. (Nasdaq: VLTS - News) announced today that it received stockholder approval for its proposed capital restructuring and that the restructuring activities have been completed. Specifically, the Company has effected the conversion of all outstanding shares of its Series A Convertible Redeemable Preferred Stock into Common Stock and, immediately thereafter, a reverse stock split of its Common Stock at a ratio of one-for-thirty. ADVERTISEMENT The conversion and reverse stock split were approved by the holders of the Company's Common Stock at the Company's Annual Meeting of Stockholders held on January 23, 2003. At the Annual Meeting, the stockholders approved the Company's Amended and Restated Certificate of Incorporation (the "Restated Certificate"), which provided for the following: (i) an increase in the authorized shares of Common Stock from 65 million to 190 million; (ii) the elimination of all redemption rights of the Series A Preferred Stock; (iii) an adjustment of the conversion price of the Series A Preferred Stock from $9.00 to $0.242; (iv) the automatic conversion into Common Stock of all outstanding shares of Series A Preferred Stock (plus accrued and unpaid dividends and arrearage interest on unpaid dividends) at 5:00 p.m. EST on the filing date of the Restated Certificate; and (v) a reverse stock split of the Company's outstanding Common Stock at 5:01 p.m. EST on the filing date of the Restated Certificate, in the range of 1:5 to 1:40, as determined at the discretion of the Board of Directors of the Company. The Restated Certificate was previously approved by Company's Board of Directors and the holders of the Company's Series A Preferred Stock. The Company filed the Restated Certificate this morning, and the conversion of Series A Preferred Stock and the reverse stock split occurred today at 5:00 p.m. EST and 5:01 p.m., respectively. As a result of the conversion of the Series A Preferred Stock (and the payment of accrued and unpaid dividends and arrearage interest on unpaid dividends), the Company issued 129,759,051 shares of Common Stock. As a result of the reverse stock split, each outstanding share of Common Stock automatically converted into one-thirtieth of a share of Common Stock, respectively, thereby reducing the number of shares of Common Stock outstanding from approximately 166.7 million to 5.6 million. In lieu of fractional shares of Common Stock, stockholders will receive a cash payment based on the closing price of the Common Stock on January 23, 2002 of $0.18 per share. The par value of the Common Stock remains at $.001, and the number of authorized shares of Common Stock remains at 190 million. The Company's Common Stock will begin trading on a split-adjusted basis when the market opens on January 27, 2003, with the interim ticker symbol "VLTSD." After twenty trading days, the Company expects that the "D" designation (signifying the reverse stock split) will be removed, and its ticker symbol will revert to "VLTS." The Company's transfer agent, Equiserve, L.P., will mail instructions to stockholders of record regarding the exchange of certificates for Common Stock.

To: Biomaven who wrote (7802)	1/27/2003 7:53:54 PM
From: Jacob Snyder	Respond to of 52153

One of the things the last 3 years has taught, is that many companies are not run for the benefit of common shareholders. They are run for the benefit of employees (a hidden communist ethic), or SugarDaddies (BigPharm; venture capitalists who have priviledged status). The implication is, many companies will be successful, while their current common stockholders will do poorly. The way to tell who these companies are, is to look at the risk of future dilution and/or de facto expropriation of existing shareholders. Companies can do this dilution in various ways; some methods hidden, some illegal, some not. Silicon-tech seems to mainly use stock options, and using their stock (rather than cash), to buy employees/pipeline/market-share/etc. Bio-tech, being a less mature industry than silicon-tech, will naturally (and justifiably) have to use dilution to fund their capital needs. But we need to understand that the moral climate of the 1990s was extremely lax. It became commonly accepted corporate practice, to lie to, and cheat, the shareholders. Biotech, being the WildFrontier of investing, is more prone to this ethics-not, than other industries. This has just begun to be corrected; the pendulum of permissiveness has swung perhaps 1/3 of the way back to equilibrium, and then of course will need to continue its momentum past (perhaps way past) equilibrium, in the other direction. The implications for biotech valuations, for the next several years, is that investor's trust will continue to erode, valuations will continue to decline (at best, move horizontally within a broad band), and access to capital will decline. The easy (way, way too easy) availability of capital for biotech, must be balanced by an equal and opposite period when capital is not available, and investors are extremely wary of holding biotech assets. This will present an opportunity for LT investors with cast-iron stomachs, to buy biotech assets when the love/hate pendulum has swung as far towards "hate" as it was toward "love" in early 2000. I'll make a prediction: ST trading (sell the rallies; buy the dips, but only the big ones) will outperform BuyAndHold, for biotechs in 2003. There will be a time when BuyAndHold works again, but we are at least a year away from that point.