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Biotech / Medical : CNS Inc. (CNXS) Makers of the Breath Right -- Ignore unavailable to you. Want to Upgrade?

To: MrBluff who wrote (325)	12/29/1997 8:59:00 PM
From: Donald carlson	Read Replies (1) \| Respond to of 432

My concern is not with the magnitude of the S&M cost it's with the return CNS appears to be getting on this expenditure. I'm hopefull as any other stockholder the ads will accelerate revenue growth. Right now that growth seems very uncertain based on my discussions with management and analysts. Looks like for FY97 a $30M expenditure to gain less than 10% domestic sellthrough and revenue. If that's all the better they can do they might as well spend less on ads, increase margins and and drop earnings t to the bottom line until they figure out how to sell the product. Some increased earnings could certainly help the stock price. Perhaps the late quarter results on the ads will show some big improvement. Lets hope so. If not management should be looking at other options. Regarding risk I agree. Cash adjusted PE of 3 looks low to me. I just think the stock should be doing much better. Regards DGC