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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (2233)	2/4/1998 10:26:00 AM
From: phbolton	Read Replies (1) \| Respond to of 18691

Roger: careful, SEPR may be overpriced but it is a good company and their chiral technology may be of wide application in the pharmaceutical biz

To: Roger A. Babb who wrote (2233)	2/4/1998 11:59:00 AM
From: skinydipper	Respond to of 18691

Roger, I never shorted a stock before but watching CSNTE this morning. Price appears going up. Are you having second thoughts or are you going to short more? Tim

To: Roger A. Babb who wrote (2233)	2/4/1998 4:39:00 PM
From: Brooks Jackson	Read Replies (1) \| Respond to of 18691

Roger re CSNTE: You're welcome -- and you're bold! Again, I have done no DD on this beyond my quick research and post this morning. This company COULD have a great product for all I know. But the financials do look a mess. Good luck -- I may joint you in shorting this, once I get into the SEC filings a bit.

To: Roger A. Babb who wrote (2233)	2/4/1998 8:28:00 PM
From: Brooks Jackson	Read Replies (1) \| Respond to of 18691

More on CSNTE: What a mess! The micro-cap company is a cash-burner with no sales and IMO little prospect of any. The entire management team bailed out in December: CEO, CFO, VP for sales, 2 directors.. The "product" is a compression program for JPEG files that is supposed to make color faxes feasible -- sounds to me more like shareware than a commercial product. The business plan is IMO just nuts -- they're counting on cheap color printers and scanners to create a market for the product. They also plan to give away the product, like Netscape. But how many people want or need color faxes? Maybe they're counting on web porn lovers to be customers. I can't find any annual report or any current 10Q on Edgar. (Any theories on this? How can the SEC let that happen?) They did file a 10Q for the period ending last June 30. One of their filings said they would run out of money by the end of December '97, which is when the management team resigned. There are a couple of PR newswire items that may give a clue to the character of this company. In one they announced they had a deal with Hayes to bundle their product. Two days later Hayes issued a release specifically denying any signed deal. My guess is this company is headed for bankruptcy pretty soon, although the floorless deal shows there's somebody out there willing to lend them money, even if on usurious terms. Just to give you some flavor, here's an item from the management discussion in the last 10Q: " To date, the Company has had no operating revenue and does not anticipate any operating revenue until one or more of its Initial Color Fax Products are completely developed, manufactured in commercial quantities and are available for commercial distribution. The Company anticipates incurring significant costs in connection with the development of its technologies and Initial Color Fax Products and there is no assurance that the Company will achieve sufficient revenues to offset anticipated operating costs. As of June 30, 1997, the Company's deficit accumulated during the developmental stage was approximately $5,945,000. Further, the Company anticipates it will have a loss in its fiscal year ended September 30, 1997, and that losses will continue until the Company's Initial Color Fax Products generate substantial revenues."