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Biotech / Medical : CNS Inc. (CNXS) Makers of the Breath Right
CNXS 0.0000010000.0%Jun 3 1:05 PM EST

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To: MrBluff who wrote (407)7/13/1999 8:57:00 PM
From: Sid Turtlman  Read Replies (1) of 432
 
I sure don't expect a good report, but I don't think the bullish story has anything to do with current earnings. It is just a matter of time, IMO, before this company gets bought out.

All CNXS really is, is a product line disguised as a company. Breathe Right would make a very profitable product for a larger PG, JNJ, etc., type of company. One of these companies could buy out CNXS at $7-10 per share and still get a bargain. They could immediately retrieve $3 in cash, eliminate much of the management, and fold the marketing in with its existing organization. The product has huge gross margins and a loyal following.

CNXS management has not yet been able to jump start growth of Breathe Right, or come up with any new products that that have big potential, so perhaps they are willing to entertain offers. Also, the competitive Clear Passage product seems to be dying out and will probably be abandoned, giving CNXS back its monopoly; perhaps that is why the stock is up. But don't expect anything special in this earnings report.
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