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Technology Stocks : Superconductor Technologies : SCON
SCON 2.500+10.1%Sep 7 5:00 PM EST

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To: Wafa SHIHABI who wrote (216)3/13/1999 3:00:00 PM
From: Mark Adams  Read Replies (1) of 903
 
Because they've managed to navigate the field trials, and generate initial sales, I hold a very small position. We are talking a whole 100 shares here.

What I've seen happen to small companies is they have technology, sales and production capability, but can't ramp quickly enough to obtain breakeven before running out of working capital.

So I have to ask, if their sales/quarter are in the two digit area, how are they going to obtain breakeven with their low utilization rate? What rate of production would push them beyond breakeven? These sound like your typical business plan questions.

Probably the old chicken and egg thing. Volume sales can't happen unless they demonstrate production capabilities. But they also have to demonstrate financial viability. Cell Site operators don't want to install equipment from a company that might not be there two years hence to service it.
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