Nuvo Pharmaceuticals Inc NRIFF

RE: RE: RE: Re potential acquisition

[Landro]

Horla,

Thank you for the reply, it is refreshing to have a discussion rather than being bashed for being unsophisticated and the likes.

On point 10, they were expecting their approval in 2006 so I don't believe that DMX/NRI would qualify have as a Phase I or II back then as they were redoing some Phase III trials/number crunshing based on the initial non-approvable letter.. They had plenty of time to demonstrate their skills since then...their compensation should have been based on share performance rather than fuzzy objective that are obviously meaningless for us shareholders in hindsight.

I have been involved as a partner/manager in a few successful start-ups  in the technology sector and we always made sure that the company was profitable BEFORE we granted ourselves the big money and the perks. Anyone who thinks that it is normal to channel one third of the dilution proceeds towards upper management compensation and have these upper managers fail to deliver shareholder value after 5 years is on badly synthesized acid or something. We've  been had!

As some highly sophisticated posters have mentioned, this stock is held by a wide group of small investors. That is a blessing for the Pep Boys because they do not face any significant opposition when they vote themselves their juicy packages. In hindsight,.

For all those that expect institutional investors to flock after the between-10-and-40-to-1 RS (yeah, a four-fold variation in the rs ratio REALLY inspires confidence in the Pep Boys forecasting skills... they sure have a clear picture of what's coming!), keep in mind that management compensation ratios are looked at closely when they analyze a potential investment. Considering these current ratios, rest assured that this element would go in the very negative column of the overall analysis.

As for immediate future prospects, I suspect that any figures about higher than expected demand from the US would have leaked from the Varenne plant by now...they can't keep the lid on the receptionist and the janitor and the guy at shipping and so forth. It is one thing to be discrete about upper management discussions with the FDA or potential partners ...it is much more difficult to keep every low wage earners working at the production plant to shut-up. If anything, the .09$ drop since the AGM could be  a consequence of negative leaks regarding US demand....it sure would explain this 30% fall in the last 5 weeks...

By the way, I sure hope that I am wrong about all this but recent history would tend to support this pessimistic analysis...apart from Rudee and a few others who were very skeptical in their posts, the pre-approval low-ball estimate consensus about where NRI should be after approval was in the .6-.7 range (heck, it reached .47 before the August deadline!). Well here we are 7-8 months later waiting for the next great milestone (this time it is US sales, the next one will probably be the P+ FDA approval a couple of years down the road) with a a sp barely holding at .22.

Meawhile, Chicoine & Co. earn 500K/year while insuring that they NEVER get diluted by granting themselves more and more options....so sweet!