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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?


To: JoeinIowa who wrote (27628)12/18/2001 1:27:08 PM
From: Ken W  Read Replies (1) | Respond to of 29382
 
Joe

Apparently there is some diversity when it comes to the understand of fundamentals of a company and speculation.

MAXF is, in fact, a fundamentaly solid company ie: cash, rev's and earnings per share. The things that keep a company open and doing business. That is my understanding of the underlying fundamentals of a company.

Speculation stocks (which CLGY falls into) have poor fundamental underpinnings. The company lost 54% more money in the past quarter comapared to the previous. Their cash is dwindling, except for the constant private placements. If it were not for grants and one family placing money with them they would be now broke. On a price to sales basis it costs the company over 100 dollars to sell a dollar's worth of product.

As to their product...VVUS is doing the same thing as far as the nitro being used to stimulate female arousal. VVUS is in Phase II while CLGY is still getting patents and doing studies. On the male side of the issue, while VVUS is invasive CLGY seems to think that their ointment will do the trick. There are several products already on the market, both natrual and chemical that address this same issue.

I don't intend to sound like I'm bashing CLGY and currently do not hold a position (sold my 7.50's today) just want to express my view of what the difference is between fundamentals and speculation.

Ken