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

To: Eddy Blinker who wrote (5205)	6/6/1999 6:12:00 PM
From: Carl R.	Read Replies (2) \| Respond to of 5736

I disagree with you about one thing, Eddy. Time is not on their side. They are currently desperately short of money, and up against the wall. They need very badly to do a secondary to raise additional money, but will a secondary fly without selling a machine? Therefore I think it is urgent that they place a machine very, very soon to validate their approach. As for the medieval approach that currently is in use, I'm sure there are more than a few faint hearted mothers who can't bear to watch blood taken from their baby. And since the insurance company pays, the American way is, or used to be, to run up the health bill. So maybe the machine will sell. On the other hand, insurance companies are getting more active about what they will pay for and what they won't. Unless they authorize reimbursement for the machine it won't sell. I suspect that if short sellers are returning, it is because of the very weak financial position CCSI currently finds itself in. Maybe they will succeed in extricating themselves by raising money though. Good luck, Carl

To: Eddy Blinker who wrote (5205)	6/8/1999 12:01:00 PM
From: Marconi	Read Replies (1) \| Respond to of 5736

Hello Mr. Blinker: If CCSI were selling sub-$1000 devices, they might have a market. Say around $600 per device as an immediate estimate. At around $3000 per device. No dice. It is a major capital expense and hence goes through hospital capital equipment review boards. They generally look at medical necessity to justify new capital equipment, and hospital margins are thin. CCSI's device is at best a nicety--but price positioned for market failure. And there are other devices in development that can do not only colorimetry but apply to life-threatening issues that are not addressed with currently marketed devices. IMHO CCSI is dead in the long run. CCSI has not formulated an approach that would make them a going concern. They have positioned CCSI for failure. Hence the trade in certificates, not business. I remain short with confidence. I claim some expertise at instrumentation. Domestically it is a healthy area, that is, fiercely competitive, and with 100% margins over cost on average. Overhead eats into that but that is the business. The international competitors have not been able to take the domestic instrumentation market by storm historically. I have seen no wherewithal exhibited by CCSI to survive such an environment. Three major counts are they are too slow, they apparently don't know marketing from sentimentalism, and they have used technologically obvious approaches that most any college kid fresh out of school would use. A seasoned instrumentation company could blow them away if they were to demonstrate any potential in this old niche dating back nearly two generations in concept. Best regards, m