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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (39544)	5/23/2003 4:25:38 PM
From: j g cordes	Respond to of 69744

re "PQUE looks to have bottomed. I bought some in my wifes account the other day and she asked what do they do. I laughed and said I don't know except they mine for natural gas and there was a volume spike. She just gave me one of those looks." At least you and your wife can discuss the market at length.

To: Logain Ablar who wrote (39544)	5/24/2003 8:36:24 AM
From: Logain Ablar	Read Replies (2) \| Respond to of 69744

Nancy: The King deal gives ELN $750M of immediate cash. Starting last year ELN ran into a liquidity crisis where it had reported debt, off balance sheet debt (2 special purpose entities) and future cash committments with its bio tech partners. So even when ELN had $1B in cash (last June) it had over $2B in cash commitments by this December. One of the key committments is the $850 Lyon debt due this December. This debt is a floorless (conversion feature not @ the stock price of when it was issued, north of $40 / share, but @ the price this December). ELN has been selling assets since last August to raise cash to meet its obligations. The King deal @ $750M plus more cash is certain sales are met, may be lower than the original $850 but is still ample and assures eln will survive (provided some of its drugs in phase II and III trials pan out). ELN should probably hold around $5.4 to $6 until the deal is closed (mid June) but is now above the 200 ema and next PnF resistance is $10 area. Note the company has taken quite a few charges for its epil ventures (the SPE's where there was hidden debt) and with the market rally in biotech this is now undervalued assets (until the market sells off again) not reflected on the balance sheet.