***why it will break new highs **, page-15

fyi This came from a poster on ozestock!

Sun shines on tan pioneer - Herald Sun
Edition 1 - FIRSTMON 15 NOV 2004, Page 034
Sun shines on tan pioneer
By CLIVE HENLEY


Epitan (EPT)

Epitan listed in early 2001 to commercialise Melanotan, the company's principal skin cancer prevention and tanning product.

This pharmaceutical mimics the human body's own skin tanning hormone, alpha-Melanocyte Stimulating Hormone, or a-MSH. Epitan's product will give you a natural tan without exposure to damaging UV sunlight.
The company has completed a number of successful clinical trials here in Australia and the US demonstrating safety, tanning and a reduction in sunburn injury.

The maturity of the project has resulted in granted patents in all major countries with further patents in the pipeline. In September 2004, EPT listed on the Frankfurt Stock Exchange and is in the early stages of listing on the US Nasdaq.

The company has started discussions with a number of pharmaceutical companies with a view to joint development. Once approved by the regulatory authorities, Epitan anticipates Melanotan's product release in 2006 /2007 engaging a significant annual global market. The company reports $10.7 million in cash reserves.

Technical Comment: Our most recent review of Epitan was in October last year. The stock was then trading at around 75 and we were able to glean a target of around $1.10. In early 2004, the stock moved to $1.08 and then pulled back to below $1 for most of the current year. It has received speculative support at this level which is a feature of this stock which demonstrates likely buying support.

On three occasions now these reaccumulation areas have provided a springboard for a subsequent advance.

The technical picture continues to demonstrate a solid true upward trend which, together with the continual buying support on price declines, reinforces the likelihood of still higher prices to come.
In fact, prices of around $1.50 can now be put in prospect as the recent price action reinforces earlier activity.

Clive Henley is a technical analyst /adviser at Tolhurst Noall. email [email protected].
Direct: 9242 4143.

Caption: Epitan (EPT)
Illus: Graph
Section: MONEY
Type: Analysis