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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (1717)	4/9/1998 6:13:00 PM
From: invest04	Read Replies (2) \| Respond to of 5736

M Chen... Thanks for taking the time to read and interpret the SEC filing...some of us poor Oregon farmers just recently learned how to tune into CNBC to watch Charles Biderman of Market Trim Tabs...can't wait till his next appearance on CNBC or on the street.com...a mention of ccsi should really make the short's day... As you know, Mellon Bank's filing with the SEC is really on behalf of Dreyfus who have long had a substantial interest in CCSI. That they have increased their percentage stake to 11.02% speaks for itself. In case anyone is not aware, the Dreyfus fund that owns a substantial stake in CCSI is run by Michael Schaumberg, a former health care analyst. Mr. Schaumberg first checked out CCSI about four years ago, and started buying it in the fall of 1995. That he has continued his ownership interest in CCSI and increased it, again speaks for his confidence in the company. I do believe it is significant that legitimate research of CCSI is now starting to make its appearance, e.g. by Charles Biderman of Market Trim Tabs. I would not be surprised to see more written research in the not too distant future. As more and more information comes out, mutual fund managers will feel increasingly comfortable that in fact there will be a substantial distribution deal shortly, and that it will provide significant revenues. Whether they wait until after the distribution announcement to invest, or before, is something I'd be worrying about if I was short, as the history of CCSI reflects the fact that on all substantial moves up, it is based on fund purchases, and not just news. Before the split the real "hard" float was, imho, somewhere between 1.5 and 1.8m shares. I arrived at these figures after excluding "company" ownership, institutional ownership, and large individual shareholder ownership of which I have some knowledge. Anyone can do the math, but if the short interest remains at 1.8m post-split shares, there are not alot of shares from which the shorts can cover if they want to. At this point the question is not seriously whether CCSI will be entering into a substantial distributorship arrangement with substantial revenues, but when; and as such, it should be very interesting to see where the shorts are going to come up with the shares to cover their short position.