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Biotech / Medical : Trega Biosciences (TRGA), formerly HPIP -- Ignore unavailable to you. Want to Upgrade?

To: sam who wrote (71)	7/2/1998 6:11:00 PM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 152

Sam, Not Concerned---Good Cashflow from Partnerships Etc.......... Lehmans report was dated June 25th--so now we know why stock spiked down around that time. Interesting thing is that since then the price has moved back up, and there was quite a bit of volume the past few days. There are some partnerships that hold the stock and looks like they used this as an opportunity to add to positions. The recent Novartis deal as well as some of their ongoing partnerships provide a decent positive cashflow, so there should be no concern regarding burn rate. Lehman's downgrade was due entirely to the CEO thing and is typical action for an analyst. The price thing is also standard--they freeze the target price at the days trading price when the report is written. This same thing spooked me out of a great biotech position with another company a few months ago--I got out right at the lowest stock price--and watched as the price rose over the subsequent weeks. Encouraged with the price action subsequent to the Lehman report date--most of Lehman's clients who wanted out--got out a week and 1/2 ago. So if you dont own the stock--sit on the sidelines--hold if you own it--when they get their CEO in place and the next partnership comes through, the price will spike up--and it will be days again until most know Lehman upgrades. This is a combinational chemistry company, and there is good demand from the pharmacutical companies for that service. Thanks for the info and best wishes.