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Biotech / Medical : Vivus, Why the Slide?

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To: George Kirlin who wrote (3841)9/24/1997 10:19:00 AM
From: DDS-OMS   of 3991
 
George,

I was thinking precisely the same thing a few minutes ago and decided to sell the rest of my position. VVUS has been operating at capacity since day 1, so there is really no way to increase production significantly. Running flat out causes eventual maintainence problems, but maybe their machinery is new enough that that hasn't been a problem yet. Blow out earnings are so widely expected that even if they do come in higher it will be a non event--one of those times to buy on rumor and sell on news. Needless to say, VVUS has had a hell of a run from 27 to now and is due a retracement. With so much of earnings increase dependent on milestone payment, if it doesnt happen right now, the stock will likely take a hit.

Regards,
Gary
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