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Technology Stocks : Nanophase Technologies (NANX) -- Ignore unavailable to you. Want to Upgrade?

To: Owen Vaughan who wrote (64)	1/12/1998 2:00:00 AM
From: Obewon	Read Replies (2) \| Respond to of 322

Owen - I spent most of last night reading through their amended prospectus and came to the conclusion that while the company's product is technologically superior, the company doesn't have the marketing muscles (ie financial support) to develop its markets by itself. Currently, the entire company is a massive R&D factory for a great technological innovation. While they are producing "commercial quantities" of product, I seriously doubt that the volume of product is sufficient to be able to accept large commitments from larger manufacturing concerns. Currently margins are low due to fact that the company is just ramping up production and hasn't yet achieved the economies of scale it will eventually need. Throw into the mix the uncertainty that the Moyce deal created in the market and the fact that 70% of the company's sales were to the company. The company has no choice but to try and expand its customer base to decrease its reliance on one company. As to its licensing out its ceramic forming process, it is obvious that the company can derive increased benefits from helping others develop a market that it cannot actually exploit since it lacks the resources. Once nano-technology becomes increasingly successful and widely accepted, the company can start to exploit its own products even more. Just my opinion. OB