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Technology Stocks : The Panda Project (PNDA) -- Ignore unavailable to you. Want to Upgrade?

To: TheLineMan who wrote (1113)	4/5/1998 3:10:00 AM
From: chester lee	Read Replies (1) \| Respond to of 1521

<<I've learnt to never cover my short position Just buy on the hype then sell when Crane runs out of steam. Once you get the short position - you want to treat it as a keeper. >> You are so right. Case in point, IFSC last week ran out of steam as the FDA said "NO" to their application for some new fangled drug. <<Apr. 2, 1998, Interferon Sciences Inc. (Nasdaq:IFSC - news) said the Food and Drug Administration (FDA) advised the company that, although ALFERON N Injection demonstrated biological activity in the company's phase 3, double-blind, placebo-controlled clinical trial in HIV-infected patients, the results of the trial were insufficient to file for approval. >> IFSC closed Monday at 7-1/16, opened Tuesday at 3-1/2 and traded as low as 1-1/2-ish intraday. My point is, I shorted IFSC on news of their floorless discount convertible. The price dropped almost immediately to $4 and rebounded past $5 a few days later as the company called off the discount convert deal. I should have covered when they called the deal off, as the fundamentals of why I shorted changed. Unfortunately I was busy and didn't notice the news until IFSC was up significantly, at one point at 9+ before it declined to the 7's. I was worried, but I did not panic. I closed my position the other day when my GTC buy order executed at 3-1/2. PNDA will be no exception. It's products are not competitive and will not sell. They have a hugh floorless discount convertible deal that will greatly dilute the float. This is their second DC deal. They will most likely run out of money in a few months and will need to do another DC deal. What motivates me to remain short? Money. I believe PNDA shares are over valued. I did NOT cover at $4, as I believe the stock will trade down to $2. I can not find a use for PNDA's products and wonder why anyone would want to buy their products given that chipmakers like Intel makes faster chips at lower prices every few months. CPQ is currently holding about 8 weeks of inventory, which they estimate are losing 1 to 2 percent of its value EVERY week. Before anyone attacks me, I got that statistic from this month's Fortune Mag. CHester PS. For those of you that know me, I DID cover half of my position at $4 several months back.