GenRad Inc.(GEN) entering the ADSL market! Message Board

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Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!

GEN 25.74

+1.0%

3:59 PM EST

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To: Jeff Clegg who wrote (61)	5/19/1997 1:36:00 PM
From: Ford Investor	of 283

Jeff, I have started hearing some rumors at my company in the possible granting of a World Diagnostic Tool contract to Genrad by Ford Motor Company. This seems to be pretty accurate information considering the recent news announcement in which the European division of an auto manufacturer (Ford of Europe?) has given Genrad a contract to provide diagnostic software expertise. This news accounts for the personnel but not the total numbers involved with constructing such a system. In the past, Ford had awarded Hickok Incorporated with a contract to provide training and publications regarding the Service Bay Diagnostic System (SBDS) unit. This had propelled the stock of Hickok (HICKA) from $7 to $21 in 2 years time. They haven't been awarded any new contracts by Ford and have dropped back to the $7 level because no more training is being offered for SBDS and Ford has let go alot of Hickok employees who worked on SBDS. All in all, there is the possibility here OF AT LEAST A 50% RETURN on an investment if they were granted such a contract. How do I know this well, look at the market capitalization for Genrad: $483 million. If Ford give them let's say a $500 million contract to build a World Diagnostic Tool, and let's say it's spread out over a period of 5 years. Genrad would get $100 million a year accounting for 25% increase for present earnings. How about future earnings? Obviously, this European company is a key factor in bringing together both areas of the company into Ford 2000: Ford North America and Ford of Europe. This seems to be in line with Alex Trotman's vision for the company. I suggest that everyone get on on the train and start to ride this baby before it's too late. Otherwise, the song "C'mon and Ride the Train, and Ride It" will remain in your minds for a long time to come. :-)

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