Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JanyBlueEyes who wrote (2566)	6/9/1998 6:20:00 PM
From: JanyBlueEyes	Read Replies (1) \| Respond to of 5736

NEW YORK -(Dow Jones)- Chromatics Color Sciences International Inc.'s stock was pounded again Tuesday, following a noted short-seller's "strong sell" and "short-sell" recommendations. The shares (CCSI) lost $2.313 Tuesday, or 26%, to close at $6.50 after earlier dipping into record-low territory at $4.50. The prior 52-week low was set June 11, 1997, at $4.172. More than 4.7 million shares changed hands Tuesday, compared with average daily volume of 350,500. On Monday, the stock lost 18%. Chromatics provides scientific color measurement and classification of human skin and some consumer products. The decline in the company's stock price follows short-seller Asensio & Co.'s report, as well as a Sunday New York Times article that said a fund with a 10% position in the company plans to "broaden" its holdings. That small-cap fund is Dreyfus Corp.'s "Aggressive Growth," whose No. 1 holding, Chromatics, accounted for almost 13% of its assets, the Times reported. The fund's manager couldn't be immediately reached for comment. Short-seller Arsenio & Co., a New York-based firm, whose prior negative reports have targeted several companies, claims that CCSI's product, Colormate III, a color measurement system to detect jaundice in infants, has no sales or licensing potential. Colormate III has received FDA approval for noninvasive detection and monitoring of bilirubin infant jaundice. In its statement, Arsenio also charged that it had "discovered a pattern of trading that deceived investors and created huge profits for insiders and their associates." However, Charles Biderman, president of Market Trim Tabs, a specialized market research firm, remains bullish on the stock. He recently issued a "renewed buy," citing the results of a study headed by Dr. Ian Holzman, professor of pediatrics and chief of newborn medicine at Mt. Sinai Medical Center in New York. Holzman told Dow Jones that the study, of 2,441 newborns, illustrated that the Colormate device provided an accurate and linear estimate of serum bilirubin. He noted that the FDA said the device's results are "substantially equivalent" to a serum blood test for bilirubin. Holzman added that he believes that either the device or an equivalent will eventually occupy "every hospital, birthing facility and pediatrician office." Officials at Chromatics, which is based in New York, didn't immediately return calls seeking comment. Late Monday, they said an extremely large short position in the stock could have strained the share price.

To: JanyBlueEyes who wrote (2566)	6/9/1998 6:34:00 PM
From: gamesmistress	Read Replies (1) \| Respond to of 5736

Dreyfus Funds 'Reviewing' Manager's Handling Of Chromatics By David Franecki NEW YORK (Dow Jones)--Although it has found no evidence of wrongdoing, Dreyfus Funds said it is reviewing fund manager Michael Schonberg's trading of Chromatics Color Sciences Inc, (CCSI) after a small brokerage firm accused Schonberg of helping manipulate the stock's price. Asensio & Company Inc. issued a report Tuesday accusing management of Chromatics Color Sciences of fraud and painted Schonberg as an accomplice because he accumulated a large stake in the medical equipment maker in two Dreyfus funds, Dreyfus Aggressive Growth and Dreyfus Premier Aggressive Growth. Asensio & Company issued a report on its Web site (http://www.asensio.com) with a "strong sell" recommendation on Chromatics, saying "both its product and technology claims are false." The New York-based firm, whose negative reports have targeted several other companies in the past, said the company's market-size claims are inaccurate and believes it doesn't have potential to generate significant earnings. "This was a conscious effort over a long period of time to purposely manipulate the stock price," Manuel Asensio, founder of Asensio & Company told reporters in a conference call. He added that even a "novice analyst" should have caught misrepresentations in Chromatics' projections, and that Schonberg, a veteran money manager, "should have known better" than to buy the stock. He also suggested Schonberg bought the stock for "personal" gain. However, when pressed by reporters, Asensio provided little backing to his bold accusations about the Dreyfus fund manager, saying the conference call was about Chromatics, not Schonberg. Dreyfus declined to make Schonberg available for comment. Dreyfus spokeswoman Patrice Kozlowski denied Asensio's allegations but said the fund company is investigating the circumstances. "We take any allegations of this kind, regardless of the source, very seriously and accordingly, we're conducting our own review of the facts," she said. "Nonetheless, based on our knowledge to date, we believe these allegations are totally baseless, and that Michael Schonberg has complied with Dreyfus'personal securities trading policy." Asensio is challenging Chromatics' projections on its new Colormate III instrument, which measures the amount of bilirubin in the blood. Asensio says there's nothing new about the Colormate III, and that Chromatics exaggerated both the number of tests done annually and the cost of the procedure. Chromatics did not immediately return calls for comment. "We believe the shares will soon trade at below $1 a share," said Asensio, who stands to profit generously if his analysis is correct. Asensio & Company is a well-known short seller, meaning it borrows stocks from owners and sells the shares, hoping to buy them back at a lower price, pocket the difference and return the shares to their original owners. Manuel Asensio said his firm has taken a large short position in Chromatics. On Tuesday, the shares were off 2 5/16, or 26.2%, at 6 1/2. Earlier, the stock dipped into record-low territory at 4 1/2; the shares' 52-week low was set June 11, 1997, at 4 11/64. About 4.9 million shares have changed hands Tuesday, compared with average daily volume of 350,500. -By David Franecki; 201-938-2205; david.franecki@cor.dowjones.com