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Biotech / Medical : Biotech Derivatives -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (105)	4/19/1999 11:44:00 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 555

DAK, and everybody else on the thread; I realize this qustion is off topic, but I posted here because I wonder if the answer might somehow be related to derivatives, arbitrage (?)/hedge fund trading...or something like that. I would appreciate hearing any thoughts you might have on the price decline on Onyx this past week. As you probably know, ONXX shot up from around $6 to $12 very briefly last week...and has since declined to about $7 1/4. Clearly this sort of pattern has happened over and over again...where a news item moves a stock voilently upward, only to collapse nearly as fast. I've been surprised at the unwillingness for folks to pile on a stock--even when the good news is genuine and exciting. We have all noticed how cynical investors are around the second and third tier biotechs...which is of course why they are probably a good investment--but I wonder if that is the answer to my question. Could it be that there is actually organized shorting going on which punishes every good deed in biotech? I cant say I understand how shorting is carried out...but I wonder if it has played a role in cutting down the share price of Onyx-- and nearly every other small biotech stock which dares issue positive sounding PR and thereby generating interest in the stock. Hope I don't sound paranoid...but it sure seems that every time I come across a decent investment, the stock, and my account, are immediately punished. I guess to clarify...I sort of wonder if the huge volume that was done in Onyx last Wednesday was partly folks borrowing shares to short.