To: Russian Bear who wrote (5923 ) 11/12/1998 1:16:00 PM From: Rocketman Read Replies (1) | Respond to
Being a genius has nothing to do with this one. I've just been in a mood to short sell stocks that seem to have run up too high, and ENMD certainly qualified. This stock was obviously run up on hype earlier this year, and although we shorted it way late in the game back then, we did it at $34 and still made money. It justs seems way too early in the game relative to other biotechs to command that high a valuation. It also seemed to have been a sympathy run up with GERN. I never dreamed that the WSJ would put out an article this negative on the whole technology, with so much supporting information. The key thing right now to keep in mind is that the WSJ is a fairly limited circulation paper, and ENMD is held by lots of little believers who aren't your regular trader/investor sorts. This WSJ article will be picked up by the media and spread like wildfire in the next week. You can bet Newsweek, Time and US New, etc... will have to at least do a small blip on it. Then, as the little players loose hope and the big guns want nothing to do with it, it should continue to trend down for quite some time. Plus, this will make it hard for ENMD to expand on their pharma partnering.
