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Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: LOR who wrote (4215)	7/23/1999 12:18:00 PM
From: Bernard Elbaum	Read Replies (1) \| Respond to of 8117

Although Pyng issued projections in the past with regard to sales levels and production dates, they were never offered as firm "targets" but rather as reasonable estimates based on a context of limited information and considerable uncertainty. It seems perverse to at once condemn the company for failing to live up to its past projections, and to insist it issue new projections that are truly targets by which success or failure should be judged. The more apt lesson is that the company must be more cautious in issuing projections lest any overoptimism continue to disappoint investors who would perceive Pyng as guilty of "hype", as apparently some already do. I don't see why anyone believes that Pyng should have a good idea of what first year sales would look like. Even if they have a contact list with names of interested customers, how could they know how much each will order? The military is one, potentially big, customer on the contact list. Does Pyng know for certain how much the military will order next year? Even when a customer has assured Pyng of definite interest in an order of definite size, regulatory restraints alone could delay the order up to 8 months. Then there are bureaucratic entanglements: for example, a Harvard MD I spoke with was interested in getting the city of Boston EMS service to order the Fast1 for trial use, but there was turnover in the director's office and so the decision was delayed. And the contact list Pyng presently has may represent only a small fraction of the contact names gathered during a year of active production and sales promotion. I'm afraid that it will be premature to issue "target" projections until the company has at least a year or two of sales under its belt and thereby has a much more accurate quantitative fix on what can be achieved. What I would be interested in seeing in the interim is a more detailed breakdown of PYng's potential market. How much can be sold abroad and where and through what avenues? How much is likely to be sold to hospitals, as opposed to to pre-hospital practitioners? Such data could instill greater confidence by investors in the size of Pyng's market, but the company has been reluctant to reveal this data as it considers the data competitively sensitive information.