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Biotech / Medical : PRCY - ANY BODY HAS ANY NEWS ON THESE -- Ignore unavailable to you. Want to Upgrade?

To: Chris Nevil who wrote (366)	6/12/1998 2:52:00 PM
From: Coha	Read Replies (1) \| Respond to of 670

I went to the shareholder meeting. My review of that will be in the next post. My impression of the activity is that there is or was someone of size on the bid. The volume has picked up hammering the price down for about 10 days. We're going to put in a double bottom here is my guess. Hacks me off but IMO it's their loss (literally and figuratively). Here are some issues upon which someone may be selling: 1) there may be a significant hit to the bottom line and particularly bk val/share in this qtr reflecting the acquisition of Humatech; 2) there may be some nervousness over the Nasdaq policies and the ramifications there; 3) continued nervousness over the tenuous nature of the cash position; 4) idiocy; 5) something pending of which I have no clue. Here's my bottom line: the only thing that would induce me to sell would be the resignation of Jack Clifford. Seeing as how he now owns 70,000 shares (paid for by his own $$ and beyond his huge option position) and his energy and passion toward this company was quite evident at the meeting, I highly doubt that is the case. Coha

To: Chris Nevil who wrote (366)	6/12/1998 2:59:00 PM
From: Coha	Read Replies (2) \| Respond to of 670

re: shareholder's meeting There were about 50 people there in total, probably about half (or more) were employees or related to the company in some way. I'm guessing actual shareholders were in the minority - it was 1/3 the crowd from last year is my guess. Typically, Clifford pulled no punches in his presentation. It was all there. Including the following: 1) They are forecasting $600k on the top line for the 2nd qtr. For those without their calculators, that's a 300% increase over qtr. 1. 2) They will be launching Tricomin soon. 3) They will be expanding the skin care line (expected to be 50% of their revenues when the strategic plan is fully implemented). In addition, they are continuing to seek partners etc. and they will also be launching the Osmocyte Island Dressing. As proof of the ramp, Clifford noted that costs for the Osmocyte Pillow have been cut 77% as production has increased from a batch size of 3kg to 56 kg. (PCA costs have shed 30%). Matt Leavitt had a chance to speak as well. I should have commented when he was added to the board in April but he is a crucial addition IMO. He made a strong case for the company's products, suggesting these are "very visible products". He emphasized the "newness" of copper compounds in the hair restoration area. He also suggested that Tricomin will be - already is - widely anticipated and could have a major impact once introduced. Clearly the cash situation is critical. It's where we all focus. Clifford made no bones about the urgency to bring in revenue. He also seems very confident - even pointed out that the company expects breakeven in 1999. Some kahonees. (BTW, I would expect these guys could raise some cash via debt if they needed to - once it is clear there is demand for their products and if the rev continues a significant ramp.) The next quarter bottom line may get a little ugly if they choose to take the full hit of the Humatech acquisition. Just be prepared for that. One of the Humatech founders talked as well - I found it tough to get a handle on this whole thing. It is new and still clearly in the infancy of finding the synergies as a subsidiary. But note again Clifford suggests that skin care will ultimately make up 50% of all revenues for the company. It is just a remarkable face-lift for this company (pun intended). If they make it, I doubt one will recognize much of the original Procyte. I found the meeting a complete opposite of the disfunctionality and frankly bizarre presentation of last year. The management seems clearly focused, together, and exudes confidence. They recently filled the TX sales position and will be filling the CA position imminently. If Wall St. has given them up for dead, they sure haven't - in fact, they will be visiting NY later this year to tell the story. I realize these dog and pony shows tend to emphasize the good news. However he got hit with some heavy questions and all of the answers were direct right back. This ain't no picnic. We all know that. But the revenue ramp is starting. Tricomin is waiting in the wings. Humatech is being consolidated in. I still really like this story and yesterday only furthered my belief that this company remains sorely undervalued. Coha