Dan, Genicom has many competitors if you count all printer manufacturers. I am not that acquainted with the Genicom product line, but I believe that their printer division is targeting certain niche markets such as printers for travel agents, where multi-copy documents are required. Also certain industrial applications.
It would be interesting if a Genicom person would join thr thread, and, without disclosing anything proprietory, helped the discussion along with informed market strategy info. This is very effective on several other threads - see Wonderware for example.
I bought Genicom at $5 a couple of years ago, based on their consistent revenue growth. Currently annual revenue is $27 a share - about 4.5 times current share price. I believe that if management is smart enough to grow revenue then profits will follow. And if the profits don't follow, then there's always the possibility that a competitor will come in and buy them. This is a general view, not restricted to Genicom. With Genicom the strategy hasn't been a great success, although I'm ahead at the moment.
The other factor which influenced me was the Enterprising Service Solutions Division, especially the Integrated Network Services Group, set up by Genicom a couple of years ago (see below). I thought that had great potential. Servicing LAN's and WAN's has got to be a growth industry. Can anyone name some pure play quoted companies in this business?
Back to Genicom. Their new, attractive Web site describes the company as having two distinct operating companies: Document Solutions (DSC) and Enterprising Service Solutions (ESSC).
The Document Solutions Company designs and markets page and impact printers for a variety of business applications, as well as products and services to support them.
ESSC is comprised of Multivendor Services (MVS) and Integrated Network Services (INS). MVS provides logo and multivendor product field support, as well as depot repair, express parts and Professional Services. INS offers network consulting and management solutions for LANs and WANs, internet-works and client/server environments, including on-site and remote monitoring services.
I keep seeing that $27 a share annual revenue, more than 20% annual revenue growth, and thinking that this has to make the shares worth at least $10.
Chris C |
