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Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: Joel Karlinsky who wrote (7160)	1/24/1999 11:53:00 AM
From: Big Dog	Read Replies (2) \| Respond to of 8359

Dear Joel: You're right: "Forget about the emotion, which is hard, and look at the facts." The facts are the Dr. Thomas and his management team are first-rate. The business strategy was visionary but "risky." In hindsight ( an enviable position to be in), Dr. Thomas made a "critical error" during the Summer 1998 when he "sped-up" his acquisition strategy with debt rather than equity (it has already been recounted countless times why the stock price declined due to overall market conditions and the short attack). This "hurrying" of the $500 million revenue goal led the company to pick-up too much debt and put the company in the "weak negotiation position" that it finds itself in. However, Dr. Thomas during December 1998 and January 1999, has improved the company's debt situation. The problem will be Wall Street. It is a hard, cold and emotionless beast. Almost all of us know more about the ABTX story than the institutions who hold the 50% position in this company. While we may be willing to give them the benefit of the doubt, I doubt that the persons who "manage" those institutional dollars is willing to do so. As far as Wall Street is concerned: The "goal" is to meet or beat the S&P 500 index. The "means" is to find stocks to get them there, and jettison stocks that don't. Period! Unfortunately, ABTX trades on the Germany exchange and instinet. So, the selling will start before we even have an opportunity to act. The stock price will probably bounce back as the shorts cover. But, once the annoying lawsuits start, potential investors will not know how to act in face of these "dark clouds." ABTX will be dead money. But, during this period the good work at ABTX will continue. And, assuming continued access to capital and partnerships, at the end of what is to be an ugly period, ABTX will be fine.