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Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: john.d who wrote (7661)	9/8/2001 9:41:37 PM
From: Montana Wildhack	Read Replies (1) \| Respond to of 14101

John, CG, Yes, its at the Design Exchange (again). I was suprised she had made that comment (though I never doubted the reporter) because it's so chatty that it's not at all in keeping with the fortress Dimethaid we've all come to know. Something is in the air. Of course it could be pollen. We announced our conference call ahead of time and there were callers. After years of saying we weren't commenting on FDA progress (except that she was in close touch and confident) she goes on CNBC and says flat out we'll get it. She takes nickels and dimes from Acqua, gets scrwed by EU beurocracy for at least a 60 day delay, is living on Canadian Tire money - and then announces an intent to buy 100% of OXO. I'm thinking of asking her what she has for breakfast. The only nagging thing for me is the obvious disconnect between producing Pennsaid since September and watching the balance sheet inventory and cost of sales with no sign of Pennsaid the last 2 quarters. There was speculation two quarters ago that it was sitting in the jump in prepaids - but thats gone, and there's still nothing in the cost of sales line. Don't forget they're producing well over 1/2 a million in Pennsaid a quarter at cost. Here are the inventory lines: 08/31 - 767,599 11/30 - 1,263,160 02/29 - 934,123 05/31 - 912,248 Here are the reported sales with the 1,430,000 stripped out in the last quarter but the cost of sales untouched* . Sales: 235,767 277,621 240,429 221,904 Costs: 135,790 140,659 197,096 151,369 No Pennsaid COS there (maybe 50,000 in Q3). This is Dioptic labs. I see the 500,000 jump in inventory end November. Then 330,000 or so disappears in Feb without that quarter's production showing up on top. Then in May its still doesn't show anywhere and the May quarter's production also isn't visible. Yet we hear Provalis has been re-ordering. ... When you follow the cash you can see they've pulled in something above $3 million Cdn that hasn't been reported yet which suggests the inventory is actually moving through. I count roughly $1.2 million in inventory at cost which I can't see. Thats based on the 500,000 increase in inventory end November where they started producing in September - and projecting that they produced an equal amount in the February and May quarters. Inventory dropped 330,000 in February which ties in nicely with the idea that they shipped it to arrive in March for the Provalis launch. It was either PlayTheKing or BlueJay as I remember who argued for some form of consignment relationship. I think that was right. They've been shipping the inventory to Provalis as fast as they've been making it. Provalis launched in March and none of those sales/cost of sales were recognized by the end of May because whatever the revenue recognition cycle is determined as - none had completed that cycle. Provalis reported end June and while its more difficult to seperate their Pennsaid sales there doesn't appear to have been a major impact yet (though news articles subsequently suggest Pennsaid is selling). I expect much of this will become clearer with the August reporting which we should see before the Oct 30 AGM. Wolf