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Strategies & Market Trends : Shorting stocks: High fliers -- Ignore unavailable to you. Want to Upgrade?

To: put2rich who wrote (550)	9/18/1998 4:38:00 AM
From: Q.	Read Replies (1) \| Respond to of 709

Looks like Asensio is short HEB, for much the same reasons that I was. Except he seems to think the product is ineffective, something I have no basis to judge. NEW YORK, Sept 17 (Reuters) - A number of short-sellers are betting that the potential of biotech company HemispheRx BioPharma to produce an effective treatment for Chronic Fatigue Syndrome has been overstated, according to one analyst in the September 28 edition of Business Week. Manuel Asensio, head of investment company Asensio & Co. told Business Week's Inside Wall Street column he is shorting the stock with a target price of zero. Asensio believes HemispheRx's ampligen chronic fatigue drug is neither safe nor effective. The company's Chief Executive William Carter told Business Week the drug's safety and effectiveness have been well established. Asensio also said the company's shares are subject to substantial dilution from as-yet-unexercised warrants, options, and convertible preferred stock. Asensio calculates that when exercised, they will boost the number of shares outstanding by more than 80 percent. A HempispheRx spokesperson confirmed his contention, Business Week said. Carter told the magazine that he doesn't believe there will be a substantial dilutive effect. Shares of HemispheRx closed at 9- Thursday, down 7/16. The stock's year high is 13-3/16.