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Strategies & Market Trends : AMIGOS INVITATIONAL YEEHAW PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (666)	7/14/1999 5:52:00 AM
From: FrozenZ	Read Replies (1) \| Respond to of 1316

I'm also watching CNS. They've been beaten up pretty badly and may not bounce back any until september or later depending on how much they end up spending on their internet site. What was interesting to me is that their internet site seemed almost identical to E-Toys (ETYS) whose own success has been mind boggling. Does the market reward a copycat? P.S Does anyone else ever follow Axxel Knutson's picks? Here's a link. stockseekers.com P.S.S. I saw a program sometime back on the history of aviation and I vaguely remember them saying something about it having been sort of a fluke that the helicopter ended up as the standard when the gyroplane has so many superior features.

To: Sergio H who wrote (666)	7/14/1999 7:56:00 AM
From: FrozenZ	Respond to of 1316

<GNBA> I just went back and read more of their website and like it. Such as: "The Company has signed a contract with a private company in China, the Shanghai Energy and Chemical Corporation, for the sale of 200 Hawk 4 gyroplanes. These deliveries are contingent upon the Hawk 4 type certification by Chinese civil aviation authorities (CAAC). The Company will be working concurrently with the FAA and the CAAC to achieve type-certification in both the US and China. " "Aircraft Base Price $295,000 " "The production tooling at the Company's facility is anticipated to be capable of producing five Hawk 4 gyroplanes per week." On the downside: " Revenues remained at an insignificant level during the three month period ended March 31, 1999 compared to the same period in 1998. During the three months ended March 31, 1999, general and administrative expenses increased slightly to $324,054 from $309,772 for the similar period ended 1998. Research and development expenses for the three months under comparison, increased to $1,679,825 in 1999 from $424,567 in 1998. The large increase was due to the increased hiring of engineers and draftsmen and further establishment of contracts with outside suppliers for tooling and parts, all part of the process of producing an FAA certified gyroplane. The resulting losses, which include interest expense, increased to ($2,025,940) from ($733,570) for the period under comparison. The Company estimates that it will need $24 million over the next two years to accomplish the following: - Manufacture Demonstrator and Public Use Aircraft, - Complete FAA Certification, - Enter into Production of type-certified gyroplanes. " I didn't find out how many shares in the float. O.K. they have an order contingent on certification but they need money for the certification process, lots of it. It may be awhile before any revenues come in so the stock would probably trade on news of loans, private placements and such. And then there's this: "The Company anticipates that beginning in 1999, sales of gyroplanes will provide an additional source of capital in the form of cash from down payments. It is common practice in the aircraft industry to take down payments to establish delivery positions on new aircraft which may not be delivered for two years or more. High capital costs, and the lack of competition resulting from strict FAA regulation are responsible for this practice. "