Logical post from another board:
The next earnings report out will be for Q4 2007. Projected Thelin sales are less than $5 million.
There is much more potential for a higher level of operational expenses, as the sales force is ramped up, than a positive surprise to the bottom line. I am bullish on the stock, and think the long-term sales picture for Thelin is available for an exceptional value right now (buy the stock!), but I would not predict any positive earnings report from current sales.
I will look carefully at the operational expenses in the next report. I expect the sales force expenses to rise. I hope the R&D is significantly lower, as well as administartive costs. There could still be some charges, against employee severances.
It is a difficult time for ENCY. They can make it as a stand alone pharmaceutical company, but the next year will be so lean that it will not support the R&D budget that they have gotten accustomed to. But they have only 2 choices: extreme belt-tightening and organic growth of Thelin revenues, or merger/acquisition. I would think the poster who suggested dilution, is sugggesting something impossible. ENCY is already a sub-$1 stock, low market cap, NASDAQ delisting candidate. Possibly some combination of dilution/reverse split, MIGHT allow a temporary cash flow that wouild be welcome, but it more likely would lead to delisting and failure.
I fully expect to check Yahoo one morning and see a white knight takeover proposal. This company does not want to cut the R&D (and they do have several promising drug candidates in advanced studies). They have brought in Morgan Stanley, as a selling agent, and they have pursued the Thelin ramp-up with a vengeance. But they are unlikely to surprise with earnings upside, as they are most likely lagging in the expense cutting (waiting a little longer, hoping on a white knight), and spending on the sales roll-out of Thelin.
