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Technology Stocks : RGFX Raster Graphics

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To: Sam Citron who wrote (136)8/1/1997 11:51:00 AM
From: David Barton   of 593
 
I have a few ideas on why the stock hasn't performed yet, based on my own concerns.

RGFX has great technology, but all its revenue comes from a very few products (DCS5442 and PP5000). They need to bring out many many new products based on this engine. HWP is a serious threat but is not going after the high end and is horribly slow in developing new products. Encad is a very serious threat but has very inferior technology.

RGFX needs to deliver two new products a year, at least, to fill out their line. They could learn a lot from Encad on this. They also need to spend a lot on marketing and strengthen their channels through Danka, Ikon and anyone else who will sell them. Encad doesn't have to market their products when distributors sell nothing else.

They are doing all of the above so now's a great buy.
-David
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