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Strategies & Market Trends : The Canine Corner(Shorters Paradise)

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To: DJRoss who wrote (29)8/10/1998 8:16:00 AM
From: RockyBalboa   of 45
 
Zonagen Update

Zonagen reports a loss of 6c a share for 2q 98. Revenues up mostly of the $5 M milestone fee from Schering, which came in accelerated, and a bit of royalties. Loss results from the devel. expenses up, attributed to the devel. of Vasomax.
Firm states still $60M cash.
Shares out, average >11 Mio.

I think I will put it on the watchlist as co doesn't burn that much money and seems to be able to generate some revenues. It may rise to $20 again after this and soon-to-be made annoucements to promote Vasomax.

Though, numbers are unaudited. And, stemming from the last annual reports (31.3.1998), Zonagen is notorious in activating money from exercising options granted to directeurs and staff, recognizing portions of it pro rata. Who knows whether all of the options will ever be exercised esp. those with a $30 Strike. Still, the market risk resulting from this recognition of income is not stated in the 10A. Well, numbers are peanuts.

sec.yahoo.com

Christian
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