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Gold/Mining/Energy : KASTEN CHASE APPLIED RESEARCH. -- Ignore unavailable to you. Want to Upgrade?

To: upultra who wrote (853)	7/4/1999 5:37:00 AM
From: Professor Dotcomm	Respond to of 1247

Sensible point to make. However, frustrated as we all are at KCA's hunt for those elusive revenues, most of us believe that, once gained, these revenues will be of the high margin variety - I should say at least in the 50% range. The other advantage of aiming for these kind of revenues is that, since KCA is a subcontractor who supplies proprietary technology, they do not need to market the ongoing projects and incur expenses in doing so. In the case of the NYCT it will be three world size companies doing this. KCA is merely a small supplier shipping key elements at an agreed upon contract price. This is all very well, the bad news is that you have to wait interminably for these kind of revenues to emerge!

To: upultra who wrote (853)	7/4/1999 12:05:00 PM
From: Ruby	Respond to 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.