Thanks for your post Philip. I tried the number you posted but there was no answer, I'll try again on Monday. Over the weekend, I'll look again at what I have on ERSI.
From memory though, I'm pretty sure that ERSI uses wireless technology (CDMA to be specific), and uses a wire simply for power to run the labels. If so, reconfiguring a store equipped with the system would not involve much extra work. Just unplugging sections of shelves and reconnecting. I admit though that I wondered if kids might short out the labels, but if this were seen as a problem then batteries could easily be incorporated into ERSI's labels. Well, unless the communication transceiver requires substantial power. If so, either Telepanel has a more efficient transceiver; or the two compaines have decided differantly concerning battery-life, size of label, convience, etc.
The literature I read, and it is several months old now, showed that ERSI was gaining market share at the expense of Telepanel in North America. The Swedish system is valued at much more than that of either ERSI or Telepanel. The analyst I read argued that there is room for at least four or five companies, that ERSI had the edge on Telepanel and was cheaper than the Pricer. He did say that Europe's greater manpower costs might make the technology catch on faster there. Personally, I'm not sure; culture might be more important than costs.
I doubt that it'll be hard for ERSI to find a marketer in Europe, There is little risk for the marketer, they just have to agree on a percentage. I'm surprised that IBM is to market the system for Telepanel in N. America, but I suppose they are involved in the laser scanners, and possibly inventory control. Is that so? As far as I understand, ERSI is planning on doing it's own marketing for N. Am.
Looking at graphs of both Telepanel and ERSI over 75 days, they start together, then ERSI had a great run up for half the period. It has since settled down, but it is still way ahead of Telepanel which has also declined over the last six weeks. I think the difference is probably due to ERSI's listing and efforts to promote the stock in London.
I hope I haven't sounded too defensive. A discussion of the pro's and cons of competing stocks is much more interesting and informative than cheer-leading. Please feel free to counter on points of fact or lines of reasoning - Philip or anyone else. - Aj |
