Corcom Inc. (CORC) Message Board

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Non-Tech : Corcom Inc. (CORC)

CORC 0.00

Oct 31 5:00 PM EST

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To: Pat who wrote (15)	3/16/1997 12:53:00 PM
From: dwight vickers	of 54

Hi Pat, Finally spent some time on the 10K. Here are some observations. Backlog down 10% year over year. Explained that it jumped so much in 1995 these are more normal levels. Inventories dropped 5% with finished inventory down 11%. At about 20% of sales these are good numbers and not a concern. Gross margins at 37.9% were up from 37.1%. Very good. Current ratio of 6 to 1 also shows the company is in extremely good financial shape. Virtually no long term debt, $1.25 share in cash. Seems to me that the strength of the dollar hurt the company in 1996, as did the strength of the peso. Biggest competitor is Swiss and they should have been helped by Swiss Franc weakness vs. dollar. Large Mexican mfg. operation hurt by peso strength and inflation. Personal opinion is that it's only a matter of time until that is reversed and becomes a net positive. However the dollar problem has only gotten worse this quarter. One last thing is that Werner Neumann is 71 years old and since he hired an investment bank last year to "explore options" may be looking for a buyer, although the stock doesn't act like it. It would be nice to see some insider buying, but all in all this is a very cheap stock. Dwight

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