"..this company - "ENCD" - was a DIRECT COMPETITOR of "YARC"!!"
While I do follow this thread - what there is of anyway - I am not a share holder, but I am considering making an investment in YARC. From what I can tell ENCD is not a competitor of YARC, but more like a "partner" since they complement one another. For example, this excerpt from the 10/8/98:
biz.yahoo.com
"YARC's XP Server is an open-architecture, Pentium-based, plug-and-play networked Postscript Color Print Server for Canon Laser Copiers and wide format printers from ENCAD, Hewlett-Packard, CalComp, Mutoh, Graphtec, Roland DG, Summagraphics, Olympus, Xerox and Selex."
At least this is as I see it not having delved to deeply into the relationship yet.
In any event, what do you think is the significance of the 50+% drop of ENCD?
As I see it, the drop was primarily due to their recently filed quarter showing a loss of sales and profit. If they are competitors, it could mean
1. The demand for their type of business has dwindled, and that YARC therefore may also "drop."
2. It could mean that YARC has taken business away from ENCD and therefore YARC may rise.
However, if in fact, they are not competitors and it is a complementary relationship - YARC products are used "in" ENCD products - and ENCD sales drop, it could mean that YARC's sales also might drop. To what extent, I have no idea since as I said I am just beginning to look into YARC.
What is your take on the current situation? What effect do you think ENCD's situation will have on YARC?
Bill
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