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


To: blankmind who wrote (4071)12/29/1997 1:32:00 PM
From: Slim Pickens  Read Replies (1) | Respond to of 23519
 
I don't think institutions want to add this stock, or add to positions they now have, until after year end. Window dressing is going on and lets face it, whether for the right reasons or not, VVUS looks like a dog on the charts. Money managers believe they will have time to get in after Jan. 1.

The slightly higher short position is no surprise because some big players think the stock will go to zero and by selling short they can give it a tiny push in their direction.

If 1/19/98 news release on '97 results is better than expected, there may be some concerned short players (maybe a nice price increase), but patient money will hold a short position until Viagra is on the market and they are satisfied that the stock is as low as it can go without increased risk that it will turn up big. This will happen just before we know if Vivus will really benefit from the ad campaign and just before we know if the introduction of Viagra will actually hurt or help Muse long term. Interim good news will continue to be discounted, but I expect some good news even before the 1/19 conference call. Maybe someone would be kind enough to be more specific on the coming good news.

If the answer to these questions is positive for Vivus, Shorts getting out will be the start of a nice ride. If the answer is negative we won't like the results. Not knowing the answer yet is what makes this stock so exciting...did I say exciting, I meant exasperating.



To: blankmind who wrote (4071)12/29/1997 2:22:00 PM
From: EyeDrMike  Read Replies (1) | Respond to of 23519
 
<<-- Also, several folks posted that they thought the short position - which is huge - over 10 mill shares for a company with only 30 mill shares o/s - had dried up.

-- In fact, the new short position, per Barron's, actually rose slightly from last month.>>

Any reason the shorts would want to cover now, and then have to pay taxes for year 97, when they can just wait a few more days, and defer taxes by a full year?

Mike