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

To: rkrw who wrote (21096)	9/1/2006 10:44:34 AM
From: DaveAu	Respond to of 52153

In my admittedly limited experience (about 6 stocks), it is worse. I don't think you need to only look at the drawdown periods. I would expect continuous pressure on the stocks to start immediately. Whether it comes from Azi/Acqua selling or from other shorts piling in or from longs fleeing, doesn't much matter. As one example, Isotechnika (ISA.TO) announced one of these deals in May when the stock was around 1.90 and they're now around 1.25. They cancelled the first draw when the price was too low but there's been no relief for the share price. I think that if they had just bit the bullet and done a good size PP at 1.65, the stock would have rebounded. I don't think too much should be made of any single case and I think you can probably also find some stocks that did well after using an equity line but I would consider the involvement of Azi/Acqua to be a great big red caution flag.