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

To: G-MAN who wrote (529)	10/31/1997 8:49:00 PM
From: Pierre-Yves Loriers	Respond to of 900

The short position on LIPO is now 2 647 287 shares, this is - 471 169 shares from last month. I think the shorts will cover the rest this month and that should help us. Short covering + momentum traders will push LIPO. I bought more shares today, I think the stock made a bottom today. Good luck.

To: G-MAN who wrote (529)	11/1/1997 10:36:00 AM
From: Chip Roos	Respond to of 900

G-Man: Sorry you took such offense to my posting. I would be happy to lay out some reasons that I feel (my opinion, of course) that LIPO is a loser but later as I only have a few minutes now. I will tell you that we investors have made many of the mistakes that you mention above in following the biotech companies. We hitch our expectations to a pipedream as most of these companies are nothing more than profit losing entities basing everything on a single product future. Money is spent in the meantime and more often than not, what happened to Lipo is the norm...."So sorry, our product didn't work or wasn't approved by the FDA." "We'll just keep the investors' money for ourselves" or something like that. Prudent investing (again in my opinion) should be based upon product, revenues, PROFITS, etc. It's fun to spend a small part of our investment portfolios on companies like LIPO, ESCI, BRE-X, etc but the emphasis should be on small investments that we can afford to lose.....not our children's educational funds. Anyway, I may be wrong on all of this and meant no harm in my posting....I do feel that LIPO has been a loser and will continue to be fun to dabble in but no more than that. I am sincere in wishing the very best of luck to you and all on this thread. I will post more later but have to run for now. Chip

To: G-MAN who wrote (529)	11/1/1997 3:18:00 PM
From: Chip Roos	Read Replies (2) \| Respond to of 900

G-Man: Now that I have a few more minutes, let me ask you a question or two concerning LIPO. Does the following concern you or present an investment opportunity?: 1. LIPO loses 21.7M on sales of 65.6M. 2. LIPO's primary product for which it has invested tons of money failed tests and was not approved by the FDA. LIPO has no product of consequence in the hopper. 3. LIPO has 37.4M shares outstanding giving the company at its current stock price an on paper value of approximately $224,400,000 or 4 times its revenues. At the stock's 52 week high, the value of the company on paper was $1,122,000,000.....not bad for a company that loses $1.00 for every $3.00 of revenue. And a paper value of over 1 billion for a company with 65 million annual sales??? Take a look at the salaries, restricted stock options, etc. of the executives of the company. Incentive? The point is that somewhere along the line, reality has to set in. Even if LIPO's Ventus worked, would the company be worth 1.1 Billion? That is the downside of investing in biotech companies. Everybody wants to make the big hit on that 1 in a thousand that makes it. That's fine if you know it going in but the mistake most investors make is that the apply the investment parameters commonly used for investing in quality companies to the biotechs and that just doesn't work. There are many great quality biotech/drug companies to invest in. The good ones will return 25-30% average annually over time. But there are those that will return 150% in a week or two, only to give it all back once some sense settles into the picture. As I said in my earlier post, I'm not always right and just giving you my opinion...not to be taken as scare tactics please. I hope your techniques work well for you....maybe we can all become millionaires when this market bounces back. Best to you. Chip