To: LoLoLoLita who wrote (4274 ) 1/4/1998 1:53:00 PM From: RT Read Replies (2) | Respond to of 23519
To All, To all the loyal Vivus investors who experienced the financial holocaust of 97, I give you my condolences. We were all deceived by inept incapable leadership in the ranks of Vivus. The people whom we entrusted our hard earned dollars deceived us. Whether deliberate or unintentional my confidence and that of Wall Street has been visibly shaken. Leland, has lost the respect of Wall Street and without it, we the shareholders will suffer for a long time to come. There are too many unanswered questions with this company, and management has consistently refused to adequately answer fundamental questions asked by analysts. During the C/C call when one of the analysts began a series of questions about the production shortfalls, Leland said I know where this conversation is going and I do not want to go down that road. When other key questions about backlogs where asked, they refused to answer. Because of these stonewalling tactics, the street has put up a RED FLAG at our doorstep. Can anyone give me a reasonable explanation why the company refused to answer such basic questions? What are they trying to hide? I personally hold Leland responsible for this dilemma and solicit his resignation. The CFO who just happened to sell ALL of his Vivus shares just prior to the big slide also raises another RED FLAG. His apparent selling definitely raises suspicion and he also should resign. A CFO who holds no vested interest in the company he works for needs to be employed elsewhere. He lacks the integrity that this position requires. Vivus, at this time needs a seasoned street smart leader. We cannot afford any more missteps. Because of poor leadership, Vivus is in one precarious dilemma. If management fails to bring the old plant up to previous production levels how are they going to deliver the additional product needed once the advertizing campaign is initiated in Feb. 98. If the old plant can only produce 600,000 units a month vs. 800,000 units why bother to advertize. This problem can be further compounded if the new plant does not receive its MCA certification later this month. Vivus will be required to ship products from the old plant at reduced profit margins to the UK. ( $7.00 vs. $17.00)(This will really hurt the bottom line). Let us pray, the MCA certification is received by the end of January and that the FDA certification is received by April 98. If Vivus can get its operation back on track and expand the new plant to four lines by year end, (triple production) we may all come out of this fiasco smelling like a rose. Until then, HOLD YOUR NOSE! The other big lingering question comes down to product demand, WILL IT BE THERE? Critically Wounded and Long, RT