Kathleen and Gang:
Back from another road trip. Travelled primarily through an area that is heavily dependent on resources.
As has been the case for some time now, I note that PC sales continue to dry up. In this area, it was particularly noticeable, with many small stores shuttered. Those who are still in business all admit to falling revenues and crumbing margins. I concentrated on small towns and small stores on this trip. It was very disconcerting. Hard-working, technically astute guys and gals, who prefer small town living, but who are struggling to stay in business. Several have downsized to stay with it. Not a pleasant trip.
Rarely move out of my favourite territory, but have become interested in a resource situation up here that has some possibilities. Got interested as a result of the rather interesting technology that has been employed. Resource stocks have been crushed, (courtesy of Bre-x), but cash is building up on the sidelines, looking for a decent opportunity. I'll post if the research continues to come up positive.
GTW will likely miss, probably significantly. The "restructuring" benefits don't last for forever, and this quarter has been tough. The recurring buy-out rumour is becoming both stale and a bit of a joke, given the deterioration in the sector.
Best, Earlie |
