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Technology Stocks : RGFX Raster Graphics

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To: darren_ who wrote (179)8/14/1997 9:33:00 AM
From: Sam Citron   of 593
 
Darren,

RE: NKOT. Yes once they start to deliver on the bottom line, we should all be rich. Basically they misjudged the speed at which non-impact replaced impact market and were caught with alot of extra capacity, especially in Europe where severance costs are high due to labor strength. That got Nukote to tumble from 20 to 8. Then they got hit with lawsuit from HWP alleging copyright infringement for saying that their laser cartridges were compatible with HWP printers and using HWP logo. Of course they counter sued for restraint of trade, illegal tying claims etc., but everyone said this is David battling Goliath and only the lawyers are going to come out ahead so they knocked NKOT to less than a buck and a half. One thing I must say in NKOT's favor: the fact that they have not yet been Lerached in a class action suit speaks highly of the fact that everything has been above board and management never hyped the stock nor did they make millions in insider trades. I've never before heard of a stock that lost 90% of its value without management getting sued (even if frivolously). CEO Pat Howard is in charge of the turnaround effort. He is a principal of the Richmont Capital Group which owns over 20% of NKOT stock, so it is nice to know that he has the interests of the stockholder at heart. I suspect there may be a few more messy quarters before they get out of the hole, but I see very little downside risk at these levels.

Thanks for the graphics info. I noticed a gorgeous billboard the other night that appeared to be backlit, but now that you mention it, perhaps it was just very well laid out indirect lighting. I'll have to find out how they did it. It's amazing how many incredibly ugly billboards there are around. There ought to be a "bad taste" law!

SC
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