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Biotech / Medical : HEB, Hemispherx Biopharma (AMEX)NEW -- Ignore unavailable to you. Want to Upgrade?

To: Bleeker who wrote (317)	9/19/1998 12:46:00 PM
From: Arcane Lore	Respond to of 857

"Biotech firm alleges 'illegal' short-selling of stock" "Shares of a small Philadelphia biotechnology company fell sharply yesterday as the company alleged that market manipulators were trying to undermine its stock by deriding a drug it is testing to treat chronic fatigue syndrome." "In a statement, Hemispherx BioPharma said "illegal shorting" of the stock -- in which option traders, in effect, place bets that a company's share price will fall and benefit when it does -- "was orchestrated in conjunction with a purposefully erroneous and misleading report" published Thursday in the Sept. 28 issue of Business Week. The Center City company said it had reported its allegations to the Securities and Exchange Commission and the American and Nasdaq Stock Exchanges." The full article by Jeff Gelles, Philadelphia Inquirer staff writer is at: phillynews.com:80/inquirer/98/Sep/19/business/HEMI19.htm

To: Bleeker who wrote (317)	9/19/1998 2:36:00 PM
From: Marty	Read Replies (1) \| Respond to of 857

Insider trading looks ok to me. Nothing recent enough to mean anything. There are lots of legitimate reasons for insiders to sell shares, including diversification. There is only one reason for them to buy though and Dr. Carter has been buying. Once buying picks up it doesn't take that much to start a short squeeze as higher prices trigger more purchases when short sale stop limits are hit. Short covering is the best kind of purchases because they don't create an overhead supply at any point for people to cash out at higher prices. Their purchases just close previous sales that we have already absorbed. There is nothing more the short seller can do except sell more shares short and hope that he isn't the last one into the rowboat.

To: Bleeker who wrote (317)	9/19/1998 4:35:00 PM
From: Bleeker	Read Replies (2) \| Respond to of 857

Insider Sales including Dr. Carter: Insider sales are actually fairly recent: July 31 is the latest for 97,000 shares. A total of 6 different directors have sold from late last year; three of them have sold since July. The 20,000 shares bought by Dr. Carter were at $3.50 actually and are the oldest ones from April 1. The other 40,000 were received as gifts. And Dr. Carter also exercised options, according to SEC filings. During the last 5 most recent transactions more than 243,000 shares were sold by 5 co. insiders. Meanwhile, a number of other companies are seeing heavy insider buying. The above information is documented through the link: biz.yahoo.com