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Biotech / Medical : Vivus, Why the Slide?

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To: Cacaito who wrote (3192)8/27/1997 3:49:00 PM
From: Tim Gardner   of 3991
 
SOME NUMBERS TO LOOK AT-------

Expected EPS 97 - $1.04
Expected EPS 98 - $1.60
Growth Rate - 53.85%
Fair Value at year end - 53.8 X 1.04 = $56 a share

Vivus has blown away earnings expectations for the last two quarters, and there is no reason to think they won't do it again. At a current price of ~ $27 a share Vivus is a steal. I disagree with the analysis that Vivus is on its way back down and that it is currently overbought. The numbers speak for themselves. There may be some nervousness after the last major slide, but the fact is Vivus is making a ton of money and growing like crazy. Most analysts put a price target on this stock at over $50 a share, and there is no reason to think it won't make it. The lastest drop to $23 1/4 last week was nothing more than a reaction to a dropping market. This stock is strong and I expect it will be well over $30 within the next couple of weeks. Long on Vivus and waiting for 50, or maybe more.
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