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Technology Stocks : BOSA(Boston Acoustics)

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To: JP who wrote (6)1/20/1998 3:16:00 PM
From: Rob S.   of 34
 
That is the $20,000 question. She said that they have hopes for receiving the renewal contract but was up front that this was not a sure thing. She also said that they are working hard to get additional customers and to introduce new products. We are already seeing the results of these efforts. She said that if they lose the Gateway business that they will still be on a long-term growth curve that will look favorable compared to last year.

I think that Gateway gets a lot of play out of BOSA's good reputation. They will probably try to negotiate hard on prices because the product has moved to higher volumes but there should be good reasons to renew the contract with BOSA.

The company should have an upward bias as the fears of Asia and market doldrums subside. They have little sales to Asian and get some benefit from sourcing of components that are now ~40% cheaper.
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