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 : Catalytica Energy Systems, Inc. (CESI) -- Ignore unavailable to you. Want to Upgrade?

To: stockycd who wrote (1048)	2/9/1998 9:32:00 PM
From: WTMHouston	Respond to of 1514

Here are links to the last two press releases: Monarch Contract: quicken.excite.com New VP of Human Resources: quicken.excite.com Here is my take on the Monarch contract. I had always wondered why the GLX supply agreement was front end loaded. This may explain at least one reason for it. If GLX has or is selling some of the drugs that it made at the Greenville facility, then it, obviously, would have no need to continue to buy them from CTAL. It would also not surprise me if the price that Monarch is paying CTAL for the drugs is lower than the price that GLX was paying CTAL to manufacture them. After all, CTAL has billed itself as being able to deliver the same product at a lower price. That pesky little margin problem again: the silence in the release about the $ value doesn't help. A market realization of the reason for the front end loading might help explain some of the poor price action of the past few sessions. This is not really a new contract. It looks like just a continuation of a contract that CTAL was no longer going to supply to GLX. While it certainly helps to keep revenues up, it is not the kind of growth investors are looking for. That said, it was nice to see it get back above 12 at the end of the day. Any thoughts????? Troy