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Technology Stocks : EDS - Recent pullback a buy opportunity???
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To: Daniel G. DeBusschere who wrote (1629)8/15/2000 8:53:16 AM
From: Brandon Buttons  Read Replies (1) of 1841
 
Being a old fart with some dealing with the U.K and Germany, the labor market is very high compared to the U.S.
Adding 1500 people will take its toll on the operating margin. If EDS can convince the folks that World War II is over and if a person is off work you can still call them at their home if needed, maybe the margin can be cut. I don't know if there are penalty causes within the contract which might effect margins especially if there is new development. I question new development for this company as one of the biggest learning process to lowering margins, especially in the U.K., you can forget everything if development is in Germany, margins is just a word with those folks. Can EDS go back to its old business of insurance and U.S. government applications that all they have to do is modify existing applications and charge prices that are out of sight? If this can happen, EDS can make some money. I question anything that requires new development.

Brandon
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