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Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!
GEN 25.74+1.1%Nov 7 9:30 AM EST
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To: Dorothy Simpson who wrote (26)3/12/1997 1:31:00 PM
From: Jeff Clegg   of 283
 
Genrad announced last year that "they had been invited to participate
in the development of the next generation European Automotive
Diagnostic Tool". Genrad's stock rose from aroung 14 to 15 1/2 on the
announcement.

Genrad is competing against five or six other companies for a part of
this "European Tool". Genrad currently manufacturers the FDS2000 for
Ford Motor Company in Europe. The unit sales of this model have been steadily declining and will evaporate to nothing in a few years.

Some of Genrad's competition includes Hewlett Packard (currently manufactures a North American diagnostic tool for Ford), Hickock (currently manufactures a worldwide diagnostic tool for Ford and Mazda), and a number of other companies that are involved in automotive diagnostic tools.

If Genrad does not get a generous piece of this new contract or if Ford decides to cancel or delay this contract, then Genrad's recent price drop could look like a trickle compared to the raging torrent that might follow.

Ford has been performing significant cost cuttings in recent quarters (large layoffs in engineering) and there is a strong possibility that this project may be postponed or completely cancelled.
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