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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: Peter Singleton who wrote (3603)1/15/1998 1:57:00 PM
From: Mr. Pink  Read Replies (1) of 6136
 
Peter:

It was brave of you to go out on a limb and estimate AGPH revenue just prior to the quarterly report.

You mentioned that you were going to try and estimate earnings. Note that AGPH's most recent quarter to quarter change in SG+A expense was about +11%. The research budget also increased by a similar amount. This kind of increase might be OK every few quarters, but if it becomes chronic, management's estimated +15% quarter to quarter increase in revenues won't have quite the impact on earnings growth that one might be hoping for.

If AGPH can keep a lid on SG+A expenses as well as slowing R+D budget inflation, earnings, and hence the stock price will skyrocket, in my humblest of opinions.

Thanks for your posts,

Eric
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