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

To: QuietWon who wrote (817)	6/4/1999 11:44:00 AM
From: Ariella	Read Replies (1) \| Respond to of 1386

QuietWon -- you really must do a little DD here..... this is an emerging biotech. What it's emerging from is cash burn. That means the company is not yet profitable, hence no hidden barrels of cash with which to buy back shares. When cash does arrive, e.g., an HU-211 partnership is signed, the proper thing to do is speed up research/development on the pipeline, not buy back shares. After the partnership is signed, my hope is that they'll do a reverse split. Nine times out of 10 reverse splits are bad news because they're usually a way for a below $1 stock to temporarily raise their price to avoid being delisted from the NASDAQ small cap list. However, when Pharmos signs HU-211, it will be a company with two products on the market, a third due for NDA, and a late stage blockbuster category drug. Cutting the shares down to, say, 10 million by reverse split would make it a lot easier to move the stock and hold onto the gain. Ariella