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

To: software salesperson who wrote (8922)	8/7/2003 7:03:56 PM
From: Doc Bones	Respond to of 52153

the threat is stronger than the execution I think this shows up sometimes in markets as "sell the news." The anticipation of a favorable FDA decision sometimes runs so high that the stock sells off after approval. After approval people tend to face the downside: competition, reimbursement, cost of sales... The "threat" of approval is stronger than the execution. (threat from the shorts' viewpoint.) A more conventional type of threat - a hurricane - can be similar. I think Barrons claimed at one time you could make money by buying affected insurance companies when a hurricane was a few days from landing, then selling after it hit. The threat of the hurricane was stronger than the reality - the "execution." ------- Some chess arcana: Of course, distraction tactics are nothing new. Aron Nimzovich is well known for having said "The threat is stronger than the execution", but he didn't count on Milan Vidmar's spin on that saying. At a tournament with a strict "no smoking" policy, Vidmar took a cigar out of his pocket and laid it beside the chessboard in full sight of Nimzovich. Nimzo freaked out and ran to the arbiter to complain. The arbiter was obviously baffled. "But how can this be a distraction? Your opponent isn't smoking." "Of course not!" Nimzovich replied indignantly. "But he's threatening to smoke!" Doc