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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI
CCSI 29.42+0.3%Nov 3 3:59 PM EST

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To: Semyon Kuretsky who wrote (4924)2/14/1999 8:24:00 PM
From: Bob Trocchi   of 5736
 
Semyon...

>>don't you think that the stock held very well in a falling market??
What does it tell you??<<

It does not tell me anything. Basing a value of a small company stock on a single day's move of the overall market is not an appropriate way to judge longer term results, IMO.

Regarding a global distribution alliance, I have a hard time understanding why it takes so long. I am quite sure that they are "trying" to do this. Given that they are a small company, they have no choice but to use one or more distributors.

Now if the product was really going to be in demand, my experience in actually working out WW distribution contracts, is that it is done quite quickly. One thing that can hold up negotiations are trying to have multiple distributors sell the product and ironing out who gets what, etc. This implies that no one distributor wants to "cover the world."

Now looking at it from the distributors standpoint, they have to make money. Here is a $3-5K product that will not sell in any volume at any one hospital. If I were a salesman I sure would not spend a lot of time trying to sell a small $ product that has very limited potential for volume and small $ add on business for supplies. The salesman (salesperson to be more correct) will focus on the products that give them the biggest commission.

Thus a distributor needs to get a huge markup on a product like this and CCSI perhaps cannot make money if they give it all to the distributor. Alternative is to raise the price and that seems unlikely.

Sorry, response is way too long. I remain on the sidelines, hoping like heck for a spike.

bob T.
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