Zonagen (zona) - good buy? Message Board

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Biotech / Medical : Zonagen (zona) - good buy?

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To: Claud B who wrote (999)	12/15/1997 9:45:00 PM
From: Bill Wexler	Read Replies (2) of 7041

<<What exactly is their burn rate?>> Over 6 million last quarter and growing 20% a quarter. Liabilities are growing at over 20% a quarter. So far the company has lost roughly $50 million. The only thing they've been good at is selling stock. Naturally, the biggest suckers were the general public who got in last at or near the very top. the price/volume activity tells the story of a classic pump & dump, albeit a slow one. What also intrigues me (besides the fact that Vasomax is ineffective for erectile dysfunction...if not an outright fraud), is the fact that the company is very undercapitalized if it intends to go through the entire FDA approval process. I guess they were relying on more upfront payments against royalties...but they've only picked up a token from Schering (not surprising, since Schering bought $2.5 million worth of stock 4 years ago). That's what makes the stock buyback announcement such a red flag.

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