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Biotech / Medical : XILLIX FDA APPROVED -- Ignore unavailable to you. Want to Upgrade?

To: Sameh who wrote (325)	11/10/1998 1:02:00 PM
From: Robert Dydo	Read Replies (1) \| Respond to of 572

I can only suspect that the reason for weak sales is the some sort of distribution mechanism protecting Olympus from flood of Xillix technology into the market. Their R&D is increasing and that is positive but at the same time the pay off is not there(sales versus expenses)therefore you have increase in number of shares as a result of the need for capital. This is the main reason why shares are, where they are. Company doesn't grow, can't support own research because large expenses versus revenue spread. Growth was a calculated factor for Xillix as mark of quality and the reason for good investment. This is not there. Agreement with Olympus is not what was expected, instead of boom of the technology something quite opposite is present. The estimate of increase of sales by 100% is not real because they would have to sell as much as twice what they did in 1998 which you are correctly pointing out. This is another drawback. Anybody who has a contact with L. McMichael will hear of meeting the expectations in sales, which brings something of a credibility problem, which is the factor number 3. I would also mention lack of news about further approvals, slow process of clinical trials for other products and generally poor exposure. The total lack of interest in biotech market and sharp decrease in value of this sector is a factor as well, but there is fewer examples of the drop beyond the average of 23%, sharply negative for XLX at 70% when I looked at the whole sector,50% when I bought it. When playing the fundamental tune here, this is even larger surprise but if you assume that fundamentals are not working its way up, that could be the answer. Regards Robert