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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: FruJu who wrote (7849)	7/8/1998 9:33:00 AM
From: Herm	Read Replies (1) \| Respond to of 14162

I was thinking about you lately. I remembered you as I watched VVUS moving all over the price spectrum. VVUS is due to announce it's earnings tomorrow July 9, 1998 after the closing bell. What are the clues? 1. The new scripts orders have been a disaster since PFE Viagra hit the streets. 2. The FDA new plant approval came in mightly late in the quarter. I don't know if it really made a difference for the EPS. 3. If I recall the European Astra order released last quarter was partially delayed in order to carry over the billing into this quarter. That will help, but, no big surprises are expected. 4. With the new plant online the additional cost in sales force, equipment, advertisement will put a strain on the narrowing profit margins due to a massive decrease in sales volume. Everybody with ED is willing to try Viagra before checking out Muse. 5.The massive class action law suit is still draining CEO time and $ resources to fight the case. Heck, I would say VVUS is sucking wind at best for the near future until they deliver EPS increases. Yesterday's reaction was a mini short covering panic. VVUS has done that before only to eventually pull right back. Hold tight and buy some cheap PUTs. If VVUS does not really impress the street tomorrow it will sink like a rock on profit taking and stock shorting. It is unlikely you will be called out in August!