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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Leo Francis who wrote (6357)11/1/1997 8:03:00 AM
From: Leo Francis   of 9285
 
BTW, I feel a market cap of $900,000,000 for VVUS with the changing fundamental landscape is just too high, and I am short VVUS. Maximum sales rates for VVUS is about 140 million per year due to capacity problems. Even if they double sales alongside PFE's entry, a valuation of 3x sales is too high for this company IMO.

Tax rates increase in 1998, as all NOLs will be used in 1997.(earnings pressure) Not to mention that management sold heavily at $30.

Good Trading, LF
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