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

To: Lawrence Burg who wrote (2116)	3/9/1999 12:20:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

all: MCHM has bounced to an attractive level at 10. This is the co. that is developing a cream which, when used with a vibrator, is claimed to be effective for some patients with male erectile dysfunction. Apparently the vibrator is a key part of the 'treatment'. Doesn't look like a very promising product to me, especially in comparison to Viagra, but the market cap is $200 M. For comparison, VVUS, a short-sellers favorite which has an erectile dysfunction product that actually sells, has a market cap of $150 M. VVUS revenues have been pounded by competition with Viagra, and I see no reason why MCHM shouldn't be pounded much harder. The recent spike is apparently due to the news that they might get a patent for their treatment. Which of course doesn't mean that the product will sell, or that it will sell enough to justify the market cap. The only real downside I can find to shorting the stock is that they have $1 per share of cash, and they claim they are willing to spend it on buybacks, even though they burn the stuff fast enough to run out in 2000. Because of the cash, shorting down below $3 isn't really practical. fundamentals and charts here: biz.yahoo.com