VVUS: VIVUS INC. (NASDAQ) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bradpalm1 who wrote (3933)	12/20/1997 3:26:00 AM
From: blankmind	Read Replies (1) of 23519

-- Great questions - I'll tackle the "cash" & tax piece; b/c this makes VVUS such an attractive takeover target (+ I'm a cpa) - here goes: 1. For 9 months ended 9/30/97: VVUS cut checks for $21.4 million - for "property purchases." Which means there is not a huge 4th 1/4 payment going to happen. 2. Normally, with all these purchases, and no borrowing or stock issuance, you'd think the cash balance would drop, right? 3. Well, just the opposite. On 1/1/97 - cash balance was $83 mill. Now, on 9/30/97, it's $97 million. 4. Oh yeah, did I say no stock issued? Well, they've spent $4 mill so far on buying stock back. My point: VVUS is flush with cash and it will continue to grow as far as the eye can see. 5. On the tax piece: GAAP requires that the tax liability be spread out over the year. So there will not be a sudden surge in tax expense in the 4th 1/4. So that's not even an issue. Out. You wrote: <<--- End of the year liabilities may reduce Vivus' cash hoard to about $70mm instead of the $100mm number being thrown around. Due to tax considerations, I also doubt that they'll be able to earn the $1.00+ now quoted by most analysts. >>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next