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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (969)	12/14/1997 11:49:00 AM
From: Dauntless	Read Replies (1) \| Respond to of 7041

Barb, glad to have you contributing - In an earlier post you said: 'We're not letting this thing out of our grip until you say "uncle".' Am I correct in assuming that you are short Zonagen? If so, congratulations - you've probably made a ton of money over the last month. As to questioning the reasons for the buyback, the press release stated: "As a result of our recently announced worldwide marketing agreement, Zonagen expects to have working capital in excess of our business needs for the near future," commented Joseph Podolski, President and CEO. "At recent price levels the company believes that repurchasing stock represents an attractive investment opportunity and will significantly increase long-term shareholder value." In case you missed it, Zonagen recently had a secondary round where they raised over $70 million. Now, they get an immediate $10 million up front from SP, with lots more over the next 1-2 years. That's an awful lot of money for a firm the size of Zonagen - and I, personally, trust the management team's assessment of their working capital needs. Regardless of your opinion of Zonagen as an investment today, it can hardly be argued that the management of the company has performed very well. Vasomax was licensed in, developed and taken through the clinical trials VERY quickly and efficiently -and they DID negotiate a pretty good deal with a MAJOR pharmaceutical house. These people KNOW WHAT THEY ARE DOING. By the way, it is the responsibility of Schering, NOT ZONAGEN, "to promote the new wonder drug, resulting in increased revenues." Secondly, with the recent market unpredictability and the false publicity unleashed upon the company, the stock has shown great volatility. IMHO, as things calm down (assuming they will - as they always do) I can certainly see Zona returning to the $30 - $40 range. Especially with the relatively easy milestones coming up in the near future that will generate good PR. So, $1, $2, $5, or $10 million invested in a buyback could show a 50% - 100% return in a matter of months. Lastly, your take that the management is "more concerned with the share price than with growing the business." is confusing. Would you have them ignore their share price? Many of the investors in Zonagen are concerned over all the recent BS that has been launched - and some may not be able to make a scientific assessment of the real facts - most, however, probably understand a buyback. Like many startups, Zonagen's share price has had great fluctuations. $3 to $12 to $6 to $18 to $11 to $45 to $22 to ???? However, there has been consistent long term PROGRESS with the BUSINESS of Zonagen - and that is the good news. Good Luck & Happy Holidays

To: Mama Bear who wrote (969)	12/14/1997 12:05:00 PM
From: Claud B	Read Replies (1) \| Respond to of 7041

Barbara, Dauntless answered the various points you make, but there's one statement you make that is rather curious. Well, that is if they actually buy share 1. I'll bet they don't. You're suggesting a little slight of hand on the part of management. Almost makes it sound like you belong in Asensio's camp. Perhaps you could elaborate on why you bet they don't purchase share 1. If you know anything about the history of this company, you would know that everything they have ever said they would do they have done. Pretty reliable as far as I'm concerned. Comments? Claud