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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Miller who wrote (781)	5/7/1998 8:06:00 AM
From: F. Jay Abella, III	Respond to of 4634

ZONA can pump its stock until the FDA or an advisory committee decides to pull the plug. At this rate it may take 1-2 years and 20-40 more points on the long end before the bottom drops out big, if it does at all. The longer it takes for ZONA to file an NDA an get FDA review, the better. Until the lawyers take it, the company has plenty of cash to sustain its existence for years. As long as there is lots of money in the overall market, ZONA will do fine until judgment day. The time to short this thing is right before it goes to advisory committee. I erroneously thought that would be this year, since the company repeatedly stated that it would have an NDA by end of 1997, and would be given fast track status if the NDA had been filed before Viagra was approved. Until that time, the long/short position will mount and that any good news (like an NDA being filed) will juice the price artificially higher with new buying and short covering (like what has happened with ORG). Then ZONA can use its stock buyback provision and/or offer stock dividends to make the shorts feel pain between now and when the day of judgment comes. Sorry to say. FJA