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Non-Tech : Fountain Power Boats (FPWR) NASDAQ

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To: R.S. Blum who wrote (155)9/15/1997 3:08:00 PM
From: R.S. Blum   of 241
 
After thinking of this Brunswick/Fountain rumor deal more, that BTW has been spread from time to time for years, I have concluded one possible scenerio exists that would make the risk perhaps worth while for Brunswick.

I don't know if the Team Fountain deal gave any rights for Fabio's Seatek/G-Drive. I doubt it, but if so, this may be the real clincher. I'm still trying to consider the implications, but this would potentially open a whole new segment to Merc that they have no access to presently.

This still would have major implications and cause a great deal of concern in the mid-range High-Perf area, but the prospects of going semi-mass market with the G-Drive is appealing. At least for the future...

Here's the up/down on this: This is a good growth area, as efficiency blended with reliability always finds it way in the marine industry. However, this drive requires considerable rethinking of the conventional hull design to allow the marriage to work. Second, this drive only really works on planning hulls. Semi-planning and displacement hulls need not apply. With this in mind and considering the so-so adaptation of the Blackhawk, that needed similar but less significant reapproaches, I wonder if Merc would be willing to bet on such a larger scale if their first stab at the future hasn't really proved profitable.

If this whole thing eventually proves true, there has got to be something hidden to make it worth turning the industry upside down. I still can't figure what it could be. And, why wouldn't they just go to Fabio directly?

-Scott
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