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Technology Stocks : Southwall Technologies
SWTX 46.990.0%Jul 1 5:00 PM EST

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To: Arthur Radley who wrote (996)12/9/2000 6:31:41 PM
From: Wade  Read Replies (1) of 1143
 
Hi Dude,

Their inefficiency in production is partially due to poor machine designs. It happens too often to a newly developed process. It will take them years to get it right. The old machines are too expensive to get rid off but pain of neck to fix it all the time. Once they get over with the hurdle they will be able to replace them with better machines.

Another issue is cost estimation. It was to my surprise that they did not know how to calculate the true cost of producing goods. They sold their product probably too cheap in the past. Now, they'll have to make money based on the real cost. Can they still compete? Hope so.

I am happy to see the stock is around $4 which is not so bad compare to those internet stock holders and poor guys at LU. When I see back and look at the facts. SWTX did not change that much since August except need some cash to pay the bills. If they can gradually make positive net income from now on. We will be able to recover the lost money in a few years. Good luck.

Sincerely,
Wade
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