Sepracor-Looks very promising 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 : Sepracor-Looks very promising

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robohogs who wrote (2162)	3/27/1999 2:02:00 PM
From: Biomaven	Read Replies (1) of 10280

Jonathan, What you describe is correct except if the company (like SEPR) is making a loss from continuing operations. To quote directly from FAS 128 (the new standard): "... no potential common shares shall be included in the computation of any diluted per-share amount when a loss from continuing operations exists..." In fact, for convertible debt (or preferred) the test is even stricter - it is viewed as antidilutive whenever its interest per share (net of taxes) exceeds basic EPS. I sold my few call options at a reasonable gain on Friday when it became clear that the initial stock gain wasn't going to hold - I will likely re-establish the position on Monday. I think we are seeing a little "quarteritis" - analysts are cutting their very near term predictions because approval came so late. When biotechs start selling their first product analysts always have trouble adjusting, focusing even more intently on the short term. While there is some logic to this for a one-product company, the true value of SEPR is clearly not affected by whether they start selling Xopenex next month instead of three months ago, or whether they get a peds label now or in nine months time. Peter

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next