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Biotech / Medical : C3 ( CTHR ) Diamond in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (159)	11/24/1998 9:24:00 AM
From: Linda Pearson	Respond to of 226

C3, Inc. Announces Latest Retail Agreements Company also Issued Patent for Proprietary Test Instrument biz.yahoo.com <The announcements bring the number of domestic retail locations that will be carrying lab-created moissanite gemstones to 76. > Linda

To: Ron who wrote (159)	11/25/1998 7:09:00 PM
From: Linda Pearson	Respond to of 226

Dow Jones Newswires Retailers Of C3's Fake Diamonds Dream Of Green Christmas By MARY ELLEN LLOYD Dow Jones Newswires CHARLOTTE -- Jewelers carrying a new type of diamond substitute - moissanite gemstones developed by C3 Inc. (CTHR) - say strong early sales of the product have them dreaming of a green Christmas. "It's just an amazing product," said Beau Beaudry, a jewelry designer who runs a high-end gift and jewelry store in Porterville, Calif. "There's been no other product that I've seen in the business that sells as readily or as steadily as the moissanite." Beaudry, a 25-year veteran of the jewelry business, said some customers of his Jeweler's Gallery have been buying the lab-created moissanite "like candy" since the first shipment arrived four months ago. And with the Christmas shopping season officially starting Friday, Beaudry expects his store sales this season to top last year's, thanks to moissanite. Charlotte jeweler Al Rousso also expects moissanite to play an important role in Christmas sales, which are typically one-third to one-fourth of his annual business. At 5-10% the retail cost of natural diamonds, moissanite appeals to the customer who "wants the look but can't afford the price of a diamond," said Rousso. Synthetic moissanite fools jewelers' typical diamond-tester, a thermal conductivity meter. However, Rousso and other trained jewelers say they can spot the difference with a low-power magnifying lens. "This is one of the greatest innovations in the jewelry industry in the 55 years I've been in it," he said. If true, that could be good news for C3. The Morrisville, N.C., company has been mining for profits since going public in November 1997. C3 remains several quarters from profitability, Chief Executive Jeff Hunter told Dow Jones recently. The company posted a loss of $5.4 million, or 78 cents a share, in the first nine months of 1998. For all of last year, C3 lost $4.9 million, or $1.73 a share, on fewer outstanding shares. C3 emerged from its status as a development-stage company this July and included figures from the first sales of moissanite in the third quarter, when it shipped 6,500 carats of the gem and posted sales of $1.2 million on it. Total sales for the period, which were $1.32 million, also included $100,000 from a test instrument C3 sells to distinguish moissanite from diamonds. Hunter said Cree Research Inc. (CREE), the supplier of silicon carbide crystals - the basic material of the stones - is working to improve yields from the crystals by at least half. If Cree, which is run by Hunter's brother Neal, can do that, C3 should be profitable by mid-1999, said Hunter. On Tuesday, C3 announced agreements for two new international distributors and for 24 new U.S. retailers. The international agreements require minimum moissanite purchases of about $10 million through 2000, including about $100,000 in 1998. The domestic agreements bring the total number of U.S. outlets to 76.

To: Ron who wrote (159)	11/25/1998 7:11:00 PM
From: Linda Pearson	Read Replies (1) \| Respond to of 226

November 25, 1998 Dow Jones Newswires C3's Fake Diamonds -2: Co. Sees 4Q Shipments Up 50% From 3Q Dow Jones Newswires Meanwhile, demand for moissanite jewelry continues to gain momentum, according to retailers. C3's Hunter said he's comfortable that the company will achieve projected shipment levels of about 10,000 carats of the gem to distributors in the fourth quarter, over 50% more than in the previous quarter. Analyst John Paulson of Paulson Investment Co., the managing underwriter for C3's November 1997 initial public offering, estimates that C3 could produce 120,000 to 140,000 carats in 1999, resulting in earnings of 25 cents to 30 cents a share for the year. Jewelers Rousso of Charlotte and Beaudry of Porterville, Calif., are both C3 shareholders. They began selling moissanite after seeing samples at an industry trade show a year ago. They report higher profit margins on moissanite jewelry than on real diamond pieces. And Beaudry said moissanite is easier to sell: the pitch excludes the lengthy comparison of individual stones' clarity and color grades often sought by diamond buyers. One customer drove 7 1/2 hours from northern California, spent 10 minutes in the store, and bought a $5,500 ring with a 2 1/2-carat moissanite stone and diamond baguettes for his fiancee. A similarly fancy mounting in all diamonds would have cost $18,000. More typically, Beaudry sells a 1 carat moissanite stone for about $550. It would cost $6,000 for a similar diamond. Beaudry said his store sold $8,000 worth of jewelry using moissanite on the first Saturday it was available, and he estimates that the gem has nearly doubled his total sales in four months. He had placed five or six orders from C3, each averaging $16,000 to $18,000, and he's planning on opening a mostly-moissanite store in nearby Bakersfield next year. Rousso, who owns Al Rousso's Brownlee Jewelers in downtown Charlotte, is getting rid of his inventory of cubic zirconia, another diamond simulant, to make room for more moissanite. Cubic zirconia typically has a glassy look absent of color. But moissanite is often more sparkly and colorful than a diamond - qualities that help many professional jewelers tell the two apart. "Moissanite looks like it's almost too good to be true," commented Don Dayton, a certified gemologist who manages two pawn shops in Hesperia, Calif. He and other pawn shop operators said identifying moissanite is a hot topic because of the potential for fakes to be passed as diamonds. Still, the near-diamond qualities are what make the stones attractive to many customers, Rousso said. Despite a low-profile marketing campaign so far, people are calling and visiting the store seeking moissanite, he said. Spokesmen for the Gemological Institute of America, a Carlsbad, Calif., trade industry group, and Jewelers of America, a New York City retail trade association, don't see moissanite threatening diamond sales. In fact, synthetic emeralds, rubies and sapphires have served to underscore the value and rarity of natural gemstones, noted Jewelers of America Executive Director Matthew Runci. That may be all the more the case with moissanite and diamonds. "I'm sure that there will be appropriate price points and approriate customers and situations where a synthetic or simulant can fit in, but I wouldn't rush to conclude that that's going to come at the expense of natural diamonds," said Runci. -Mary Ellen Lloyd; 704-371-4033