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Technology Stocks : TLAB info?
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To: Pirah Naman who wrote (1707)11/25/1997 4:16:00 PM
From: Dave Dickerson  Read Replies (1) of 7342
 
Pirah-The short answer to your question is this-In many cases, Tellab's products are the top of their category. If you produce Land Rovers you don't get into price wars with Chevies. Most of their products have unique features and once the base unit is sold the customer can add upgrades. These upgrades are pricy little devils with good profit margins (just like Toyota replacement parts).
Take another angle, namely Tellab's partnerships in marketing around the world,like Erikson.See recent news release.
In many cases Tellabs egt. gets sold without a lot of major sales expense,another way to hold down costs and maintain high profit margins.
These are a couple ideas for you, maybe someone else has other opinions.

To all on the string, and that includes Chip Hunter,have a good THANKSGIVING.
DAVE DICKERSON
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