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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (1182)	12/21/1997 4:25:00 PM
From: Bill Wexler	Respond to of 7041

The Zonagen (ZONA)/Texas Biotech (TXB) circle jerk. I now turn your attention to the well-organized, and professional-looking web page of biotech superstar Zonagen: zonagen.com Read it carefully, particularly the section about products under development. Is this a company you would pay $260 million for? Note that David McWilliams, president of a bizarre, worthless company called Texas Biotechnology Corporation (TXB), sits on Zonagen's board. It is extremely interesting to note that TXB's capitalization structure has amazing parallels to Zonagen. Just like Zonagen's fortuitous deal with Scering-plough, TXB also has a licensing deal with a reputable firm - SmithKline, who also happens to be an early investor. sec.yahoo.com We all know that fine companies like ZONA and TXB are more concerned with advancing modern medicine than lining their pockets. We can rest assured that they wouldn't resort to dealing with Wall Street bottom feeders......right? worth.com

To: Mama Bear who wrote (1182)	12/21/1997 4:27:00 PM
From: Bill Wexler	Respond to of 7041

The Zonagen (ZONA) and Texas Biotech (TXB) frauds. An investor in one or both of these companies must be the most patient person on Earth. Both companies have been around for years and have never delivered any viable products - but for some odd reason they have fueled plenty of speculation which has put hot air under their stock prices. There is a good reason for this. Both companies are simply vehicles for selling worthless stock to victims. Both companies are actively engaged in hiring stock touts, shills and consultants whose sole purpose is to talk up the company (i.e. lie). Their R&D activities are simply worthless facades. Their PR however, is top notch. IMO, Zonagen will either: a) Never file an NDA for Vasomax. b) Delay the process as long as possible. Insiders at these companies understand that it is much better to have a lack of real information available than to expedite the processes where unbiased observers and government panels have an opportunity to shine a light on their activities. Lack of information fuels speculation - which supports stock prices as the vultures cash out. Since Vasomax is an ineffective medication for ED, it behooves management to elude public scrutiny as long as possible. They understand that an FDA rejection will send the stock to the floor in minutes. Unfortunately, enough bad information has now leaked that the stock has plunged over 50% from its all-time high. This does not make the stock a "buy" or a "bargain", on the contrary, its a clear warning that something is seriously wrong. Now you understand exactly why the company scrambled to announce a bogus stock buyback (highly unusual for a developmnet stage company with no revenues/earnings). Note the evasive language of the press release. It is clear that this is simply another lie in an endless string of lies. Much is made by the touts about the licensing agreements between Zonagen and Schering and Texas Biotech and SmithKline. It is important for the investor to understand that these sort of agreements are done very frequently with development stage firms. The in-house scientists at the larger companies do not conduct their own tests on these drugs; rather, the marketing and sales arms rely on data from the smaller companies. Large pharms make these sorts of deals all the time fully understanding that the vast majority will go nowhere, but hoping that a successful drug will make up for the rest. In essence, they can be suckered just like any other investor. Finally, the investor should understand that the shills and stock touts that are hired by frauds like ZONA and TXB will do and say anything to sell the stock - because they are paid with stock themselves. These people will cold-call, issue hype under the guise of "research", and troll internet discussion forums in order to separate you from your money. In my opinion, they are loathsome, crooked bastards who will sell their own grandmothers for the sake of a buck...and they certainly don't give a damn if you lose your life savings when these stocks inevitably crumple. worth.com