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Technology Stocks : Presstek -- Stock of the Decade??
PRST 0.00010000.0%Sep 29 10:16 AM EST

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To: Pierre Panet-Raymond who wrote (1178)8/20/1996 12:14:00 PM
From: James C. Shircliff   of 11098
 
The "razor and blade" slogan is not a good analogy for these products.
Razors are cheap and ubiquitous and can almost be given away to drive the blade market. Blades ARE consumables, like plates, but that is where the analogy ends. Instead, the so-called "razors" are really very expensive pieces of capital equipment made for the sole use in one industry. Razors are cheap, consumer items that the entire adult population uses on a regular basis. The analogy, I believe, was dreamed up by our favorite stock market guru TO SELL STOCK. Much akin to, "Doesn't this baby purr like a kitten?" and "I wouldn't be afraid to drive this to Florida right now."
So, please, everyone, refrain from that slogan, "Razors and Blades."

Pierre, the Xeikon example will fall on deaf ears. Relative valuation is a foreign concept to story-stock believers. Try looking at Imation in the same context.

Jim
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