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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (5190)	12/27/1997 12:41:00 PM
From: aknahow	Respond to of 17367

BTW The Lancet next appears in Jan. Dec of 96 had only 3 issues so I do not expect to see the next one until Thursday of next week. Even then it remains to be seen if it will contain a response from Dr. Brett Giroir.

To: Arthur Radley who wrote (5190)	12/27/1997 2:18:00 PM
From: WL	Respond to of 17367

>>Maybe we can see a nice bounce from here. IMHO the drop that we have seen this month can be explained in large part by year-end tax selling. As George pointed out in an earlier post, as the price began to slide earlier in the month (perhaps due to tax selling), the lower prices made tax selling attractive to more and more shareholders. The continuing drop may also have had additional snowballing effects including sales to reduce perceived risk, cut losses, meet margin calls, etc. Others may have decided to hold off buying during the drop due to fear of bad news, wait for technical buy signals, etc. Also, this is a year when the market overall has been strong. The increasing demand to take tax losses may have been coupled this year with a diminished supply of tax loss candidates. Get the picture? Now, however, we are approaching, perhaps past, the end of this tax selling season. Any sell trades from this point on will not settle until 1998 (3 day settlement). Recently increasing volume suggests that buyers may have been venturing back to pick up the shares of last minute tax sellers in anticipation of a January bounce up from the currently depressed [and depressing :-( ] levels. As Tharos pointed out in a recent post, watch for higher volume, as it might be a sign of a technical bottom. While there could always be other reasons out there for the drop, tax selling and related effects noted above are sufficient to explain what we have seen, IMHO. Also, remember that the historical price charts of this stock show that this level of volatility is not all that unusual. Absent tax sellers, I am hopeful for a gradual recovery in price as some of those tax sellers repurchase their shares next month. All IMhO - In My hopeful Opinion :-). Best wishes to all for a healthy and prosperous new year.