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Non-Tech : Enamelon (ENML) - Does anyone follow this? -- Ignore unavailable to you. Want to Upgrade?

To: Greg B. who wrote (454)	3/3/1998 3:25:00 PM
From: chester lee	Read Replies (1) \| Respond to of 863

Bill Wrote: #3 If you carefully examine Enamelon's current capitalization structure, you will quickly discern that it does not have the money or infrastructure to complete clinical trials, much less conduct a full nationwide rollout of Enamelon. this suggests that the company will inevitably need to sell more equity or issue convertibles. Both options will be dilutive to current shareholders. Greg Responds: The key assumption to make this all work is selling toothpaste. If toothpaste doesn't sell, then ENML needs to raise more cash, putting shareholders in dilutive situation. Chiming in, ENML will not make any profit in 1998 and MAY start to earn a small amount in 1999 as anticipated by the company in their SEC filing. Assuming everything comes up rosy for ENML, clinical test and all, they still do NOT expect to turn a profit until 1999 or later. The bet is ENML's calcium phosphate remineralization MUST work, and that they have adequate cash to funds do large scale manufacturing AND, even more funds to do a marketing blitz. I'm not yet convinced that ENML's claimed remineralization technology is effective. I'm skeptical due to my own reasons which I laid out a few hundred posts ago. The fundamentals of ENML is a big bet on positive results against their remineralization technology. Fundamentals aside, I know this stock (like another stock who will do a potential future stock offering) will attract wall street firms and analyst supporting ENML's claims and most importantly ENML's stock price. I'm not a good timer on stocks hyped on the upside, as I always find myself holding the bag after the party is done and gone. I've been more successful identifying short sell candidates and sticking to my guns. I'll cover when the kite job starts, and short again when I believe it over. I'm currently short and will sell puts as a hedge. Chester