Arch Therapeutics Inc (ARTH)

[Regis999]

Michaal Murphy is wrong....

Stock is up Friday and today because of this. He is flat out wrong. Anyone else know why?? Michael you have to do your homework !!

Dear New World Investor:

Last week, I reminded you that Arch Therapeutics (ARTH) is the current recovery trade, and it was just under my buy limit. I said the next driver for the stock would be signing a deal for European distribution, which should net them a milestone payment large enough to fund the FDA approval process.

In a presentation last week, Terry Norchi, the Chief Executive Officer with an MD and an MBA who used to run Putnam's healthcare fund, commenting on their cash position said: "We had about 12 months of runway and you'll hopefully hear more about that in the not-too-distant future."

CEOs, especially CEOs who have run a major healthcare fund and listened to hundreds of company presentations, do not throw out a tidbit like that unless a deal is imminent. Since Arch does not need cash soon, so it isn't a stock offering, this means to me that a European distribution deal is imminent. I immediately raised my buy limit.

GLTA,

Michael Murphy CFA