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Technology Stocks : Seagate Technology - Fundamentals
STX 274.77+0.9%11:29 AM EST
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To: Frodo Baxter who wrote (228)11/30/1998 10:48:00 AM
From: Hungry Investor  Read Replies (1) of 1989
 
Lawrence,

Thanks for the input. Time to market and volume is absolutely key in a market with exceedingly rapid price declines. When margins are razor thin, next generation products must come in quick succession to capture the fat of the margins before the competition gets up to speed. The key is not only R&D, but making the R&D (which is often done in the States) come to fruition in Asia on the production lines. If companies can't make the transition, they are dead in the water and the R&D monies spent don't get the bang for the buck (the fattest margins). Its actually all very simple: execution. If R&D, purchasing and the production line are talking about tooling, production methods, specs, tolerances and components, you are sure to fail.

Scott.
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