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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)

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To: Gary Strike who wrote (3566)12/13/1997 12:05:00 PM
From: Musa Goksel Bulat  Read Replies (4) of 23519
 
In CC they said that they produced 800000 units per month between August and October. Units produced during September and October should be available for sale during Q4 (since it takes almost a month to make and sell). This makes 1600000 units, their average price is $100 per 6 unit package, this means they should be able sell at least $26.7 million from this production if they sell whatever they make. November is the only month which may cause production short fall for Q4.
25% decrease in sales relative to Q3 means they will sell $29.25 million in Q4. This means they only produced 153000 units in November. This looks like a very sharp decrease. Their December production, if they were working at 600000 units per month rate, will be around 450000 units due to plant closure. Hopefully they will have additional 1200000 units produced during January and February which will make total units 1650000, and sales will be $27.5 million for Q1 98 unless new plant is operating.

Q4 figures are telling me that there is something wrong with his picture.

I am long VVUS but also concerned about the figures above.
Can anyone comment on this
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