Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Cell Therapeutics (CTIC) -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (629)	3/17/2005 5:54:44 PM
From: Sam Citron	Read Replies (1) \| Respond to of 946

It's an indication of extreme pessimism to me when insider buys are greeted with such cynicism. I'm short the stock, but will cover tomorrow as I take delivery on my March 5 naked put short position, barring a 15% rise tomorrow. Sam

To: scaram(o)uche who wrote (629)	3/17/2005 7:40:38 PM
From: former_pgs	Read Replies (1) \| Respond to of 946

I don't mean to imply that there is an attempt by CTIC to defraud investors by lining up "faux" insider purchases. However, I think that for unprofitable biotechs, insider purchases by management really have not played out to be the useful signals that they may serve to be in other sectors. That is why I don't view the recent insider purchases in CTIC as a "wink" to faithful investors. These purchases could reflect genuine belief in the utility of the released ST3 data and/or confidence in the upcoming ST2/4 data. Alternately, it could be reasonably interpreted as a signal that the insiders believe that despite the impending flame-out of Xyotax, there will still be value in the company (trisenox + pix + others). Although both are reasonable "vote of confidence" scenarios, one implies optimism in Xyotax, the other implies its demise. Let us not forget that management wrote themselves some rather large and free lottery tickets after they combed through the blinded data. They're no angels, and it might be worth keeping that in mind while interpreting these insider transactions... especially when we have very little idea about the real data behind ST3.