Haber and Fasca, at least, have done a little homework. Lots to chew on in that article.
Thomson (RCA's CE manufacturer) appears to be getting on a more business-like basis, after dropping $2 billion and being told by the French government to find partners to buy them out.
The article failed to point out, however, that the real pricing threats are from LGE's fellow Koreans- Daewoo and Samsung. Philips, also, has been losing its shirt dumping cheap Magnavox product on the US, for years. Don't know why Zenith hasn't been going to the Feds to stop the dumping.
Agree with Dennis that this has been the first coverage about the potentially huge royalties Zenith will earn from VSB. This fact should have been included in Zenith's last 10-K, and we shareholders probably have a good case for suit for this very obvious omission. Trouble is, if we win, we lose....
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The way I see it, the shorts have a very narrow window of opportunity to scare out the weak longs. Come September, HDTV is going to the hottest consumer product at home due to its introduction by HBO, CBS for NFL games and DirecTV. Zenith's VSB royalties, also, will start to kick in.
Can Zenith hang on until then? Gannon, Dangremond and LGE think so. If you are sitting on the sidelines, my suggestion is to begin investing in Zenith right now, on a minimal basis, and add to your position, each month. If Gannon and Dangremond fail, you've lost some spec bucks. However, if they pull it off, this, easily, could be a $50 stock. |
