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Gold/Mining/Energy : KASTEN CHASE APPLIED RESEARCH.

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To: upultra who wrote (853)7/4/1999 12:05:00 PM
From: Ruby   of 1247
 
Most of revenues for this type of technology are 50-60% margins. In this case a lot of the expenses have already been incurred as part of the R&D for this project...hence those large losses in the past year. The profitability will be high...but we do have to wait until 4th qter and year 2000. The key is stability in revenue which kasten never had. With a weak 2nd qter results coming mid august, we can't expect more of a rise in stock price. Once we pass that date, there is only good news. Expect a run up in price after mid august, with a climbe over the next 6 months to a high of 3-4 dollars. If Versapath kicks in with several major deals (like Reuters) and RASP keeps hopping, we will see 5-6 dollars per share. I think we are at a good risk/reward point now. Accumulate until august 15th and then really get loaded with shares.
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