Hello everyone,
I'm taking a hard look at XRX right now. On it's face, XRX is pretty cheap, but you know about looking solely at the cover of a book.
Reading past posts has me wondering whether XRX has some serious long-term issues it must deal with. From experience, XRX copiers are the most expensive, and they are getting burned by lower-cost products. Look at this view from Mother Merrill just this week:
Merrill Lynch said in a research note the long-term trends for Xerox were "not positive," and that it was bothered by increasing competition and customers' choosing lower-end product. It reiterated its neutral rating on the stock, which it thinks will stay in a tight range over the near term.
Also, one must wonder whether this is also a management problem. A PaineWebber analyst described these problems as "Xerox-centric" rather than industry-wide "...due to the fact that this is a bungled restructuring program.". IMO, management blaming Y2K and a strong dollar for their woes is somewhat lame.
Any thoughts on the future?
BTW, does XRX still have the PARC in Palo Alto?
Regards,
Pat
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