bj:CCSI
Date: 98-01-05 18:03:11 EST
From: Skipard
To: Skipard
Over the last week or so I have recieved many calls and emails on what is wrong with CCSI? The answer is really very simple, boredom, but it doens't appease anyone. Many of you are old friends, who suffered through the dog days of the FDA. Our risk then was one of survival, and what would happen if we didn't get approval.
Our risk now is a time risk. Some have said why don't I sell it and buy something else that is moving and come back to CCSI right before the news. I asked them to buy me a winning lottery ticket also. While I was on a 2 week vacation I went over every stock in my portfolio many times, and reviewed the reasons for owning it, and the potential risk/reward.
Today CCSI is $14, seeing some light selling. The question in everyone's mind is when is the deal? Let me bore you with the facts, as I see them.
1. She has retained Fred Frank, who really is a heavyweight in the medical field, and Fred is incentivized to get us a dynamite deal. he doesn't involve himslef with small deals. He is a heavy hitter. He will bring home the bacon, not only in the medical arena, but also in the other areas.
" In this regard, Mr. Frank has submitted to the Board his recommended agenda involving the Company's ongoing business discussions and negotiations with medical companies interested in global distribution rights. He has also recommended additional potential licensing and distribution partners involving licensing for other applications for the Company's proprietary technology."
Additionally, Darby has added some very powerful people to her Board of Directors, and her Medical Advisory Board. These are not just pretty faces, these are active, loyal, and true believers in what CCSI is all about, and where it is going. Each of these additions, are highly respected leaders in their respective fields, and are going to add greatly to the success of CCSI.
Mr. Vimond is a former Chief Executive Officer of Shulton (a subsidiary of American Cyanamid Company) and R.J. Reynolds Tobacco International (a subsidiary of RJ. Reynolds Tobacco Company) in addition to earlier general management positions at Johnson & Johnson and Warner-Lambert Company.
The first new member, Dr. Ian Holzman, Chief, Division of Newborn Medicine at Mt. Sinai Hospital in New York City, Professor of Pediatrics, Obstetrics and Gynecology, was also the principal investigator for the Company's extensive clinical trials conducted at Mt. Sinai Hospital for the Company's FDA 510K submission on noninvasive monitoring of bilirubin jaundice.
The other new member, Dr. M. Jeffrey Maisels, Chairman Department of Pediatrics, William Beaumont Hospital, Clinical Professor of Pediatrics and Communicable Diseases, University of Michigan Medical School, is an internationally recognized medical expert on Bilirubin infant jaundice. Dr. Maisels has written extensively on bilirubin and we are fortunate indeed to have his expert assistance in moving forward into the global presentation to the
medical community of our medical systems for noninvasive monitoring of bilirubin.
This last gentleman, Dr. Maisels, is the World's leading expert in Bilirubin infant jaundice. His interest in CCSI is all encompassing, as he believes this product is 10 years too late. He envisions the world as it's market, and he is going to bring much credibility to the product worldwide. Know a good peditrician? Ask him of he has heard of Dr. Maisels.
OK, Skippy, we have heard all of this in the past, so what else is new.? Why isn't anyone picking up analyst coverage? Because any analyst worth his salt needs to build a model of sales and earnings before he can publish. Hell, I could write it, but who would care?
The key question is this. Where will CCSI be in the intermediate future?
Let's play a game. 1st quarter. CCSI announces licensing and distribution deal with XYZ, a household name. CCSI is guaranteed minimum royalties of $10-15mm in year 1, and increasing for each of the next 4 years. Assuming shares outstanding of 8.5mm , we could see 1st year earnings of a minimum of $1.50. What should the multiple be? 30x IMO, because it will be recurring, and increasing for the next 4 years. Let's see, that gives us a price objective this year of $45.
How about next year, add 50%-100%.
Now in the above, it was stated that Fred Frank was also working on other applications.
He has also recommended additional potential licensing and distribution partners involving licensing for other applications for the Company's proprietary technology."
Now those other applications, should be larger than Bilirubin, and therefore more profitable. Dental, cosmetic, industrial,etc.............
So we have a $14 stock with huge upside, I said huge, some might say that is hype, I say huge. We are a quarter away from a stock that has an upside potential of 200%, and everyone is bitching about the stock split, since when is that bad news, the price, me too, and I want it now. So do I.
I have one last question to you my fellow shareholders, SHOW ME A BETTER IDEA FOR THE NEXT 12 MONTHS!!!!!NEXT 2-3 YEARS. |
