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Biotech / Medical : Kos Pharmaceuticals, Inc (KOSP) -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (51)	12/3/2001 10:05:34 PM
From: IRWIN JAMES FRANKEL	Read Replies (1) \| Respond to of 118

<Am I reading this right?> I read it the same way. Do you think Jaharis is a "believer"? I'd say so. ij

To: rkrw who wrote (51)	12/4/2001 9:49:27 AM
From: Biomaven	Respond to of 118

I don't understand why these shares aren't included in the wtd avg shares outstanding That's what FAS 128 prescribes if the company isn't profitable on an operating basis. Otherwise the extra shares are anti-dilutive because their effect would be to reduce the loss per share. When you apply the treasury stock method, which takes into account the cash the company receives from the conversion/exercise, my best guess is that the diluted outstanding (calculated assuming the company is profitable) would be between 15m and 16m additional shares. In terms of valuation, remember they already have an annual revenue run rate in excess of $100m. A P/S ratio of around 10 on sales growing consistently at double digits isn't excessive. (AMGN, MEDI have P/S near 20). Peter