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Technology Stocks : RGFX Raster Graphics
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To: darren_ who wrote (265)9/4/1997 4:47:00 PM
From: David Barton   of 593
 
Darren,

I agree with many of the concerns you have expressed. So does the market, or this one would be at 15 already.

A word of experience on magazine adds...... They don't do much. What counts in this industry is distribution. You have to be on the floor with a willing salesperson to sell your product. Encad does this very well and is available everywhere, even though they have not so great products, in my opinion.

Also, realize that 8 color printing is not nearly as big of a deal as 6 color printing. The reason is that 8 color only expands the gamut, and not by much. More gamut-expanding-bang-for-the-buck can be had with better print media. Look at ENCD and HWP glossy media for examples. Adding true red, blue and green doesn't have a huge impact, especially when most images are NOT near the gamut boundries.

6 color printing turns 300 dpi into continuous tone, like you said. This is a very big deal since it allows one machine to do all types of signs for any venue, not just far away billboards.

Here's a prediction.... this industry is headed for consolidation in a big way. The best distributors will partner with the best technologists and anyone who isn't one of those will go away.

RGFX has technology, they just need distribution. I think they can get it but I think it is more likely that they will be bought.

-David
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