Speculating in Takeover Targets Message Board

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Strategies & Market Trends : Speculating in Takeover Targets

ULBI 5.880

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Jan 9 9:30 AM EST

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To: richardred who wrote (1081)	2/19/2006 8:05:23 AM
From: Rarebird	Read Replies (1) of 7256

>>Higher input costs, primarily as a result of the higher oil price and increased costs behind our innovation pipeline, together with the adverse impact of the hurricane season, have constrained operating profit growth," Diageo said.>> It really is the oldest story in the economics of capitalism. If all input costs are going up, one must either recover these costs with higher selling prices or, if that cannot be done, one must increase efficiency to stay in the market place by employing better tools than before. That means new capital tools, with the old tools going to the scrapheap. And that takes savings, which have to be there to enable the new tools to be brought into existence.

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