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Biotech / Medical : FPA Medical Management - FPAMQ -- Ignore unavailable to you. Want to Upgrade?


To: Tom Hua who wrote (890)7/11/1998 1:55:00 AM
From: Douglas V. Fant  Respond to of 1110
 
Tom, Yes, yes-two important points in this announcement- (1) FPAM identified the first elements of its reorganization- i.e., the current divisions which will comprise the core of the "new FPAM"; and (2) FPAM clarified that at least its major creditors are "on board" with FPAM's reorganization plan and will accept an equity for debt swap to rebuild the Company.

That may dilute the current shareholders, but will also effectively overnight revitalize the cash flow of this Company. Also as I noted earlier, it is really strange for me to read FPAM's news releases, because FPAM is following the same pattern that my Company followed in the late 80's in returning to health, and well, record profits in 1996 and 1997.

Also the timing of this news release intrigues me. In fact I think I smell a "rat". I think that the Company is setting up a "bear trap" for the shorts in this stock. If you have followed FPAM's trading pattern of late then you know like clockwork FPAM sells off in the morning, and then recovers and closes just slightly down from its open in the afternoon. What a great stock for scalpers and freeriders going long after the first daily opening drop!

Also after any 10% plus uptick the shorts "pile on" this stock and try to send it back down- a sort of short-term uptick in the short interest in the stock as it were. Want to get your stock up in price to say $4-5/share quickly? Like maybe in just one trading session? If I were FPAM, then I would release some good news after the market closes (like tonight), and then on the next trading day, let the stock tick up. That should bring the short siders out in force- then let the shorts pile on- and then drop the other shoe- release even better news- while the market is still open of course. Just a hint FPAM if you are reading this Thread- panic the shorts and cause a stampede to cover....

I'm not saying that this will happen- but has anyone else been in the military here? Remember when you learned how to conduct basic reconaissance patrols, and how certain places as you move your squad forward throught he countryside just give you the "feeling" that someone is out there waiting for you in that position to ambush you?

By the way I picked up a few more shares @ $0.90/share today- long on FPAM and "stockpiling" shares of FPAM stock....

Sincerely,

Doug F.