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Technology Stocks : Elamex(ELAMF)
ELAMF 2.150-15.7%Mar 7 3:00 PM EST

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To: Clouseau who wrote ()7/26/1997 9:32:00 PM
From: Paul Senior   of 276
 
My belief for low margins is: a consequence of a lack of depth and breadth in management and in the professional ranks. We should also expect problems (costs) with the necessity to coordinate and integrate 5000 employees among 17 manufacturing facilities.
It's not a dollar/peso issue. Sales are in $USA.
It's not a mandated wage issue. These things - gov't wage hikes - are IMO routine and publicized in advance.
I'm saying it's:
1) a failure to price the business correctly. Possibly managers not knowing the costs of their businesses and maybe not having the infostructure to get this information. I note some emphasis stated by the Co in increasing supply chain management activities - especially helpful for the less profitable turnkey services (vs. assembly-only which carries higher gross profit (p. 15, Annual Rpt.))
2) or maybe Mr. Vallina, in running his company(ELAMF), has decided that the current profit picture is okay with him, as in just bring him more sales, sales, sales.
Paul Senior
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