CMTR-CHEMTRAK FDA OK Message Board

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Biotech / Medical : CMTR-CHEMTRAK FDA OK

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To: Dan Berger who wrote (328)	2/14/1997 5:54:00 PM
From: Miles Rhyne Hoffman, CFA	of 1172

Why would/should CMTR not enter into this agreement? I am confused that you find this deal confusing? In my accounting classes, one thing we learned is that fixed costs are fixed (brilliant, eh?). The higher those fixed costs, the more leverage any additional revenue had. I haven't looked to see how high CMTR's costs are because this stock/company has been a disappointment to me and I'm not wasting any more of my "fixed" time on it (why am I even writing this?). Anyway... Presumably 95+% of CMTR distribution infrastructure is a fixed cost. Looking from the other company's perspective, it could be very expensive to duplicate CMTR's distribution setup, so why not use CMTR? We're looking at the same horse and perhaps calling him different shades of brown, but he's still a horse and still brown! Let's just hope whatever the color he runs a little better now. Miles

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