OAKLEY- NYSE:OO Message Board

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Non-Tech : OAKLEY- NYSE:OO

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To: ROCK who wrote (247)	3/12/1997 3:15:00 PM
From: rainman	of 1383

Scaling back on employees can be both postitive and negative for a company. It's negative because it means the company doesn't have a requirement for the resources, meaning demand for the companies product has slowed. Hopefully this slow demand is only temporary. It's positive because it reflects on the balance sheet. Usually, the negative impact is felt immediately because of severence packages but longer term (the next quarter), the company benefits because the salaries have been eliminated. Some traders buy on this type of news because earnings are usually better during the next 3-12 months, as long as the reason for the slow demand was temporary. Personally, I feel the situation with Oakley is of a temporary nature and laying off the employees is good news for the balance sheet. I realize what I'm saying isn't very sensitive (towards the folks being laid off), but it's reality in business and happens frequently.

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