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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (871)	2/13/1998 11:29:00 AM
From: chester lee	Read Replies (1) \| Respond to of 2506

John, Re: IDMC, good for you. I'm a SEC Searchers Member and did get enough information on IDMC to initiate my own due diligence to have participated. I scalped 3/4 of a point and moved on. On another subject regarding Discount Convertible Stocks to Short, I am currently short on IFSC (Interferon Sciences) who issued a news release this morning announcing it had exercised the option to repurchase $7,500,000 of Convertible Preferred Stock from an institutional investor for $7,894,737 (plus accrued dividends). biz.yahoo.com The stock is up slightly on the positive news. IFSC cite their reason: ''After considering the reaction of the Company's stockholders to the issuance of the Convertible Preferred Stock and the negative impact the issuance has apparently had on the Company's market capitalization, the Board of Directors determined that it was best to repurchase the Convertible Preferred Stock now and eliminate the uncertainty in the marketplace as to whether the Convertible Preferred Stock would be repurchased,'' My comment: OK, IFSC didn't anticipate shareholder reaction and the drop in market value and now is trying to remedy their earlier actions by buying back the issues. Isn't their cash situation then still the same (and slightly worst off) due to the cost of such a short lived deal. Any comments?? I shorted at $5 because of the company's poor financial and the DC action. Now with the DC out of the way, I have to re-evaluate the merit of the position. I'm not comfortable shorting IFSC based on cash burn alone, given that they have potential products emerging out of clinical phase III in a few weeks. Chester