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Technology Stocks : ACII - AmeriChip International, Inc
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To: Ted M who wrote (930)1/20/2008 7:09:32 PM
From: BarclayDonaldson   of 2396
 
Ted: You are correct. The majority of revenues come from an acquired business that can not use LACC for the work they do. That revenue should always be there above and beyond what they can do with LACC, but there's no indication that they can grow KSI's revenues substantially above what they currently are, the big $$$ need to come from LACC. ACII is using what was empty floor space in KSI to do their LACC work. They acquired KSI for that reason (as well as the Tier One benefits). ACII had originally targeted a company called APM for acquisition, they did the type of work suitable for LACC. ACII didn't want to build the process from scratch, they wanted to apply it in a company that already had the turning equipment needed. Unfortunately, that deal never materialized and KSI became "Plan B" and they have ended up building the process from scratch.

One thing you need to know about LACC is that it only applies to certain types of metals, it's not something that you would use for all types of machining because the chip problem does not apply to harder metals. That might help answer why this hasn't been adopted yet, they can only target certain types of machining on certain metals. Fortunately, there's enough high-volume machining out there for LACC. They just need to get it going.
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