Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: schadenfreude who wrote (6740)	7/20/1998 7:50:00 PM
From: Bluegreen	Read Replies (1) \| Respond to of 17367

Once again, don't be so myoptic. Take off the blinders. Let's expand on this a little bit. Say for the sake of argument you just gave a Biotech 25 million in cash, keep in mind a BIOTECH not General Electric. Since the share price of the Biotech is under 5 dollars a share you don't have the retail investor to take other side of your short trade but astute professionals. One might think the astute professional on the other side of the trade will see EXACTLY what you are up to. Meanwhile back at the ranch, before you can short and after you handed over your 25 million, the Biotech's super duper monoclonal antibody causes fulminant hepatitis and also a big class action suit gets thrown in the mix. Now instead of 4.50 a share it is now 1.00 a share and where is you plan now? All I tried to point out earlier is there are BIG risks when giving money to Biotechs. You act like the stock will always act in the manner you want and you fail to take off the blinders to see the peril your 25 million million might be in. Common sense ought to tell you that if these types of deals were risk free then everyone would want them and THEN the Biotech would not have to give such a discount and could put more restrictions on the convert. Now it is my turn to say GET IT?