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

To: LOR who wrote (6801)	7/30/2002 10:41:55 AM
From: Bernard Elbaum	Read Replies (2) \| Respond to of 8117

The main question for Pyng is whether or not they can inch their way to profitability before they run out of cash and fund raising ability. On the plus side is their ability to operate at very low cost and the modest signs thus far of sales growth, albeit from a disappointingly small initial volme. On the negative side is the company dependence for marketing on distributors and on buying decisions that have to involve doctors in emergency rooms as well as buyers for ambulance companies. A concern I have is that emergency rooms are in crisis in many localities, in what is becoming a national crisis. Apparently, in some localities, the costs of malpractice insurance have led doctors to refuse to work in emergency rooms. Other localities have depended on doctors participating in emergency rooms for what has become a level of insurance-based pay that is too small to be worthwhile to them. In some localities, the only emergency room in the vicinity has actually closed until authorities worked out a deal that could reopen it. Most of the market for the FAST1 lies in the ambulance companies, not in the emergency rooms. But many of the customers who normally would be most interested in new gadgets and who Pyng is counting on to be early buyers are the emergency rooms in teaching hospitals. If many of them are in crisis, it may not be a good time to sell them a new gadget that required doctors to acquire new training. And even when the initiative for purchases comes from ambulance companies, they still have to get the emergency room doctors to go along and get training so they know what to do with a patient who has a FAST1 in his chest. I'm afraid the crisis in health care insurance and financing could prove a serious obstacle for Pyng that will slow sales growth. I would feel better if the company had a few million in cash reserves to await the building of its market.