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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Merav who wrote (196)	11/12/1998 7:21:00 AM
From: Richard Huth	Read Replies (2) \| Respond to of 1386

Getting as much attention as possible will be very important for the next few month, as we need the help of small investors to get prices up. Some are speculating about big investors jumping in and lifting the stock to $4-5. I have raised concern about this before, because PARS is still too small for them. It is a problem of size (market cap.) and liquidity. INVIVO, Oct 1998: "In fact, the general banishment of the small-caps has been decreed by portfolio managers, themselves unnerved by the uncertain economy. Unpredictability leads to conservatism: portfolio managers want to make sure they know how to get out of a situation before they get into it. And small-caps don't have the floats required for easy-in, easy-out stock transactions." Think of a bigger Investor, having about $100 million and usually investing in 10-20 companies (more companies are unusual given the restriction to cover all of them thoroughly). This leads to an average investment of $5-10 million. With PARS standing at $2, our investor would find himself with 2,5 - 5 million shares = 6-12 % of PARS. He would not only risk to move the price significantly with his deals (in both directions), but would have to file at SEC. This is nothing big investors are looking for. Below a market cap of $250 million we should not expect too much from bigger investors. Personally I would not count on the before stepping over the $500 million boarder. The above mentioned example might be illustrated by the acquisition made by Agis. Assuming an average price of $1,8 / share, Agis made an investment of about $3,4 million. For small investors like us this is a big amount, but not for the big investors. So it took only a small amount to become a major shareholder. In this case I join Omer. I do not believe that Agis is planning a takeover or anything like that (even if it would be a good bargain for them!). It was just a good, small financial investment. Therefore, for the next few month we urgently need the support of new, small investors to lift the stock to an more adequate level. PR: Within the last week and during the chat PR was a major subject. David was demanding some improvement, some joined him more, some less. As I mentioned in one of my posts, investors have to find the information on first view, not on second. One example might be found in BioCentury, Nov.9,98, in which David Greenwood, CFO of Geron (GERN) is talking about a media kit to inform investors (in this case to prevent hype):"Greenwood said th media kit helped manage the volume of inquiries, but more importantly let the company translate and articulate the underlying science for those unable or unwilling to read the Science paper themselves."They really look for you to explain what has happened, why it is important and what you intend to do with it,"...". Even if everything can be found on the net and SI, for new investors it should become as easy as possible. This is one part of shareholder value. -Richard