The stars weren't aligned

Buried in Carrington Laboratories' 10-Q was that the CARN was buying back its $6.6 million in convertible preferred shares sold in October. The company completed the transaction on May 21, for $7.8 million. CARN said it elected to spend the $1.2 million to save its common stockholders from dilution. The price tag for the repurchase includes CPA fees, attorney's fees registration fees and the like, according to the company.

Since selling the deal, the cards have not fallen right for CARN. Three days after the close of the placement, a Phase III trial of CARN's Aliminase ulcerative colitis drug showed no benefit over placebo (see BioCentury Nov. 4, 1996), sending the stock down 52 percent to $10.125 (see chart).CARN closed Friday at $6.625...