jSamuel Jacobson - Page 13




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          Schmid stated that the drop in price from the primary market to             
          the secondary market is attributable to tremendous oversupply.              
          Schmid indicated, however, that these prices are not necessarily            
          the most accurate picture of fair market value and that many                
          other factors combine to determine fair market value, including             
          sales history and collector demand.                                         
               Schmid attempted but was unable to identify documented sales           
          of the Kesslers.  Analyzing the demand for Kesslers, Schmid                 
          pointed out that the demand for first day pages was much less               
          than the demand for first day covers.  Because Schmid was unable            
          to identify a competitive market for Kesslers within which to               
          ascertain an appropriate fair market value, he estimated fair               
          market value using the first day cover market.                              
               In arriving at fair market value, Schmid took into                     
          consideration that the Kesslers do not conform to the more                  
          popular envelope format, they only span a limited number of                 
          years, there is no established collector following, and no past             
          sales history was available.  He also considered that the                   
          Kesslers are unique first day products and would have some appeal           
          within the overall market for first day collectibles.                       
          Accordingly, he stated that the Kesslers would likely trade in              
          secondary markets for first day covers for the same period, thus            
          indicating a range of $1 to $2 on an individual basis and $0.35             
          to $.59 in larger groups.                                                   






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