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

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To: VLAD who wrote (18035)1/23/1999 10:01:00 PM
From: Greg22  Read Replies (1) of 23519
 
<<Let's debate these projections a bit:>>

My pleasure:
Lets start with the premise that I am overly optimistic, and you are probably slightly pessimistic. Thus if we average our expectations, I think we will arrive at a more realistic number. In 5 days we will find out who is closest. So here goes (numbers in million):

Gr&St/VLAD/Average
US sales: 3.0/3.0/3.0
WW sales: 12.0/10.0/11.0

Total Averaged Sales: 14.0

Cost of Sales: 8.0/5.0/6.5
R&D/SGA: 4.0/6.5/5.25

Total Averaged Costs: 11.75
Profit = 14 - 11.75

EPS = .07

According to your source we can reasonably expect about .03. Lets average again and give a penny.

(.03 +.07)/2 -.01= .04

I think realistically we can expect EPS = .04.
Which would put PE at 2.75/.16 = 17

Industry average PE = 53.

Expected stock price = 2.75*3 = 8
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