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

To: Joe Krupa who wrote (9926)	6/24/2002 11:58:26 AM
From: twentyfirstcenturyfox	Respond to of 14101

Joe, brilliant post, thanks. Since there was no volume on the closing, last Friday, the following Provalis NR could not have been responsible for the price drop,. This is, possibly, (rather than probably) a nuisance suit. However, unless UK business style has changed greatly, it is unusual to threaten legal action so publicly. regardless of the respective merits of each company's position - Provalis sounds PO'd at the cavalier way it was treated. This spat, if it stays in the news, will eat up valuable (and scarce) time of the company management. It will negatively impact on some of DMX's plans (e.g. in Europe) and on the stock price also, imho. This was a small issue - at the time of the choice of the distributor and at the time of the termination of the relationship. Possible thought by a prospective DMX distributor, today, anywhere in the world... "Would I do business with these people? I'm not so sure, reading all this $hit by way of NR between DMX and PRO". Outside of your post, Joe, I am disappointed to see most of the posts about a one day event (the stock price drop) which should be history (according to convention) by Monday's close. I guess that I am in a real minority of one - being concerned about the outcome of the companies business strategy re: distributor agreements outside of Canada. The selection of small distributors, rather than one or two large ones means: - we got: (i) fat future profit margins and (ii) little or no upfront fees from small, cash-challenged distributors. we traded away: (i) internationally recognizable distributor(s) (ii) paying some up front fees (iii) getting the Pennsaids ball rolling a lot faster than it is, in countries where it HAS been approved for sale The strategy in Canada is: we will distribute the product ourselves. Again, this strategy is to seek greater profit margins in the future - in exchange for, oh, a tie in with a large J&J type. Plus some upfront fees. This strategy, which I have never seen explained by the company, is eerily similar to a business over-expansion. If FDA is delayed, there is no alternative source of funds. If the stock price stays low, the ACQUA deal (which I do not disapprove of, btw) is either dead or too expensive. How does the company finance itself forward? I do not like our lack of options, partly brought about by the distributor business strategy adopted by DMX. Until DMX gets FDA, it will not get HC approvals. Accordingly, if FDA is delayed, DMX cannot announce a J&J distributorship agreement. Here's a radical strategy: go work on J&J Canada, and sign a distribution deal with them. Once publicized, the stock will blast past 5-6 bucks, and, with a recognizable name and suitably timed NR's mentioning DMX in the same breath as the venerable J&J, and you would have permanent support for the stock price...and we would have a lot less worries than I think we should have right now. Keep the Acqua deal working. Fox. PROVALIS NR courtesy of a DMX and PRO stockholder: RNS Number:5452X Provalis PLC 20 June 2002 For Immediate Release 20 June 2002 Provalis Distribution Agreement for Pennsaid Provalis (LSE: PRO; NASDAQ: PVLS) has now reviewed its position with regard to the unexpected notice from Dimethaid purporting to terminate the Agreement under which Provalis distributes Pennsaid in the UK, details of which were announced by Provalis on 14th June 2002. Provalis has concluded that, whilst Dimethaid was not entitled to terminate the Agreement, the actions taken by Dimethaid have irreparably damaged the relationship between the two companies. As a consequence, Provalis has no alternative but to treat the Agreement as terminated and is now looking to Dimethaid for full compensation for its losses. Notice of this has been given to Dimethaid today. Provalis will consider at the year end the carrying value of the investment made in Pennsaid. END