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Biotech / Medical : VICL (Vical Labs) -- Ignore unavailable to you. Want to Upgrade?

To: William Strop who wrote (540)	1/29/1998 1:19:00 AM
From: Steven Ivanyi	Read Replies (2) \| Respond to of 1972

I am actually short this stock and think that it will go back to the beginning of it's rally. In other words it will retrace all it's gains to about 11 1/2 - 12.00 This is just my own humble opinion. Steven

To: William Strop who wrote (540)	1/29/1998 10:34:00 AM
From: Scott H. Davis	Read Replies (1) \| Respond to of 1972

That TA projection about a potential move back to the 14 - 14.5 range may have been based on the 50% principle - retrenchment after a sharp gain. But another principle is that stocks move back to moving averages - the trend can continue in a direction with oscillations around the MA. Right now, VICL stabilized at about the 25 day MA. Other indicators show stabilizing (RSI, WIlliams %R). Also we had a piercing line reversal chandlestick formation. Finally, there was a breakout from a long declining trend, and a bounce off that line, which is now technical support. So in summary, I don't see a return to the 11-13 range technically. Remember also that VICL stated in their last qtr statement that they had received a milestone payment following the close of the period. So that will mean two straight periods with a major EPS surprise (losing a lot less than they were projected to). Also, they recently picked up another strong buy analyst recommendation. One more piece of strong good news will probably have the effect of additional buying due to short covering.