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Technology Stocks : Trimble Navigation
TRMB 82.34+0.1%3:59 PM EST

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To: Yin Shih who wrote (2729)8/26/1998 11:17:00 PM
From: SKIP PAUL  Read Replies (2) of 3506
 
One of TRMB's problems
has been the slower than forecasted penetration of GPS technology
into major markets. I'm guessing this has resulted in a devaluation
of some of that R&D as it became obsoleted before it ever had a
chance to generate major returns.


The companies GPS technology has evolved incrementally building on its base so Im not sure that it will ever be obsolete. Trimble's base Patents could be blocking patents if Trimble chose to enforce them. Besides the company has managed to considerably weaken the competition, built a brand name and reputation in the business, expanded its sales network, and gone through the steep learning curve of addressing multiple market constituencies, all of which have hidden value provided the company can capitalize on them. BTW, The companies compound growth rate from 1985 through 1998 is a very respectable 38%
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