Insmed Inc (INSM)

[ED20332]

INTERSETING POST BY NUTODABOARD ON YAHOO BOARD
by: nutodaboard
Long-Term Sentiment: Strong Buy 03/29/06 07:49 pm
Msg: 81840 of 81842

I do not follow GNBT. I am a Financial Consultant with a full service Regional Brokerage firm. I hold Series 7, 8, 65 and 66 licenses. I have worked in the investment business for over thirty years and am currently a member of a NYSE committee (I am not allowed to say which one). My firm discourages FC's from trading what they call penny stocks (under $5) so most often I do not trade them. I became interested in INSM because Tobin Smith has it as a legacy stock pick and the more DD I did the more interested I became. Your question about rehashing old news that could be taken as a negative is obviously going on. 60 Minutes last Sunday had an interesting section on Hedge Funds and how they used misinformation to drive down stocks they had shorted. I seriously doubt that Hedge Funds are doing this with INSM because the stock price is already almost too low for them to make enough money to make it worth their effort. I would also think that would be the case with GNBT. I spoke with the lead Market Maker at our firm regarding the possibility of Short Sellers trying to drive INSM down and he doubted it. The short interest in the stock is not huge and normal short selling by Market Makers could explain most of that number. I do not know who the market makers are for INSM and GNBT but I am beginning to think they may be behind some of what is now happening. It would not be short selling but the reverse. If they really believe the stock has a future they could somehow be influencing the re-release of negative news to encourage selling and all the while be building up their own holdings. It would not be ethical but neither is what the Hedge Funds are doing.

All that being said I really do not know what is going on with INSM. I am suspicious because really there has been nothing but good news coming from INSM since December and the stock keeps going down. That brings up my one concern. Often we see stocks going down because there is something we don't know that more serious money does. I don't think that is the case with INSM because there was no problem selling 43MM shares in the offering and that would have had to have been to some serious money. But something is going on because the stock is now selling at maybe 3 1/2 times cash on hand, has an approved drug ready to go on maket and an exciting pipeline. The stock traded higher without money in the bank and no approved drug. The lawsuit for unfair business practice should be a non event and the patent suits won't be settled for a long time. I will be getting a list of who the market makers are and if they are the Ameritrades of the world I will be even more suspicious.

Still if the science is as good as it appears there is only so long it can be held down and before the stock starts moving up. Then if the MM's are holding large positions they will begin taking their profits somewhere down the line. That's why I am not selling but I am not adding to the positions of my clients or my own. I am still buying some for clients who don't own any and for whom risking a small amount of their portfolio is appropriate.

Long answer to your question but I wanted to get all my thoughts out there.