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

To: Cal Gary who wrote (10477)	8/8/2002 10:51:31 AM
From: Greg Spendjian	Read Replies (1) \| Respond to of 14101

One thing I noted is that in this press release there is no reference to when we might expect either Pennsaid approvals from HC or FDA, OR the results of the WF-10 Phase III to be released. Don't know what this means!

To: Cal Gary who wrote (10477)	8/8/2002 10:18:21 PM
From: PlayTheKing	Read Replies (2) \| Respond to of 14101

CG: Y/E financials at this stage mean squat to me as it reflects March 2002 numbers...historical mumbo jumbo. What does strike me as odd is the fact that they have released "unaudited" Y/E financials. That's not typical for a public company as they would usually wait until their auditors sign off. I'm not sure what the hold up is. Then again, how much credence do we place in auditors given the recent fiasco down south. Below are my observations: 1) Oxo purchase now amounts to CDN$92 million. In 1997 they invested USD$20 million, and in 2002 another US$37 million totalling US$57 million. On top of that, they also had notes receivable of CDN$4.4 million which magically "disappeared" from the Y/E financials. Assuming an exchange of $1.55 we get CDN$92.75 million [57 x 1.55 + 4.4] Clearly, their primary focus is OXO and not Pennsaid. Assuming a 25x purchase price, minimum, and if WF10 proves to be what we all think it will be, then the minimum price pharma's should be willing to pay is USD$1.5 billion for rights. 2) Tax loss carry forward is going to become an issue. For this fiscal year we "lost" CDN$1.9 million in tax free revenues. I figure the pool will be close to CDN$34.7 million pool for this fiscal year. Most of these benefits will expire by 2008. PlayTheKing