Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VVUS: VIVUS INC. (NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: mc who wrote (4053)	12/26/1997 2:19:00 PM
From: Slim Pickens	Read Replies (1) \| Respond to of 23519

Having all the bad new out in the open is the best policy. No surprises to the down side that way. However, you have left out of your opinion any impact of good news that will likely be coming along. The early reporting of 1997 earnings could mean good news about productivity and fourth quarter results. I leave open the possibility that management went to the worst case figures when they announced the 25% product revenue shortfall. You didn't mention that our ad campaign would take place as soon as production could handle increased sales, or that our drug is not oral, so it has some advantage for people who don't want entire body subjected to Viagra. Doctors will be educated and maybe there will be existing and future clients who want muse instead of Viagra. Also, what about the possibility that Viagra will run into a few hurdles. I think the stock is beat up pretty badly now and brokers who are on top of things know it. Slim

To: mc who wrote (4053)	12/26/1997 2:35:00 PM
From: blankmind	Read Replies (1) \| Respond to of 23519

-- I don't recall VVUS managment saying anything about a $20 mill drop in cash on the confer call. I do recall them speaking about the huge cash horde, and what could be done with it, but no mention of reducing it by $20 mill. If I'm mistaken, give me a quote & I'll stand corrected. -- For 1/4 ending 9/30/97, if you go to the statement of changes in cash flow, VVUS spent an additional $10 mill in cash for "property purchases." (note: need to compare 9/30/97 vs. 6/30/97) -- Yet cash & equivalents still went up by $3 mill. -- And as silly as it sounds, a reduction in sales can actually bring down your a/r balance and drive up cash. Why? B/c you're collecting on old sales and not racking up new ones. Is this good for business? NO way. However, does it help the cash balance? Yes - at least in the short run. -- My point is that the cash balance may not be a $100 mill on 12/31/97 - but it won't necessarily be lower - and all indications from a reasonable valuation shows there's no way the balance will drop by $20 mill. Out.