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Biotech / Medical : Guilford (GLFD) - Steadily Rising -- Ignore unavailable to you. Want to Upgrade?

To: Quilty who wrote (237)	8/4/1998 5:46:00 AM
From: Steve	Read Replies (3) \| Respond to of 496

I have read the 7/15/98 Alex Brown report & the 7/16/98 Piper Jaffray report. Same old S?%$. Both are sticking to their respective 1 year price targets of $33 & $27 respectively. I think these price targets have been in place for about a year already. There isn't much new in the reports--what can they say other than investors are getting creamed. Somebody on the AOL boards has been advocating shorting this stock for awhile. That person seems to be right. As I sit here today my feel is that the stock will continue to go down. I don't know how much more of this pain I can take before I will have to start unloading. I e-mailed the analysts to ask their opinion of how low this stock will go but of course no reply. Bad PR for their Companies'. In Saturday's Barrons the head of the Oracle Hedge Fund gave his reasoning as to why Biotechs are great bargains. His said all it will take for this sector to get moving is "One deal." Then he sees prices doubling. He talked about 90 % gross profit margins on drugs versus the 25 % for internet stocks. It sounds like he has been buying biotechs but has probably had his head handed to him. Also I read in the WSJ that the new fund manager of the T Rowe Price health care fund unloaded biotechs in favor of large cap pharmaceuticals. However, the old fund manager joined the Kaufmann small cap fund to help find value in biotechs. Maybe some money flowing to this sector soon. One disturbing thing I have noticed about GLFD is that the put option activity for later in the year has picked up. When the put activity picked-up in Apr - Jun the stock promptly plummeted. I wondering if the same may occur.