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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K

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To: John Chapman who wrote (6017)12/3/1998 10:06:00 PM
From: jhild  Read Replies (1) of 7491
 
John, I think CSHK will be using third parties to piggy back their program into these magazines. They are much cheaper, though of course less effective as well, as the message that is delivered is not just CSHK's.

If CSHK were to do it on their own, they would have mastering and production costs to manufacture all of those CD's. Second they would have the minimum ad run rate cost of the publication as well as the insertion costs for inserting the CDs in the publication. Now I hate to bring this up, but the publications run on schedule, and that would mean that CSHK would have to deliver to the magazines on time for their production runs. They are not nearly as flexible as you are when it comes to granting CSHK leeway as with all of their other previous deadlines missed.

Figure delivery costs of 1½ million cd's at north of $1 million. If they screw up on the cd run, i.e. quality control, it gets very expensive. Look at all of the little details they have left hanging to date. That doesn't give me a lot of confidence that they can execute such a plan.

As an accountant you can run the numbers on how many actual hits, i.e. people that actually pay to unlock, they need just to break even on the entire out of pocket for the campaign.

I would suggest that they are not likely to sell that many of the products during the brief lifetime that this product will even have relevance. The window is closing already, and they are talking about next spring already. Good luck.
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