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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Sheldon who wrote (1134)	7/30/1999 8:49:00 PM
From: Gary Walker	Read Replies (1) \| Respond to of 2702

Thanks for the comments on VARL.. As I said, I'm impressed that such a small company can make money plus plow funds back into R&D. I also like the fact that they don't pay dividends, which is modern thinking. I read the 10K and find the companies comments about production capacity very interesting. Sounds like they have plenty of open capacity to sell, yet their overhead is already covered by the lower volumes. They increased production, launched the production and yet remained profitable. Sure margins went down year over year, but they were absorbing the increased production overhead at relatively low levels of capacity utilization. There are other positive signs...IMO. Cell phone prices have softened so domestic demand should continue to rise. Third world countries find it cheaper to install wireless infrastructure versus hardwire. VARL able to compete both technically and economically with Japan manufacturers and big US companies. The biggest negative is the lofty stock market and the slowly overheating economy.... I wonder how long these high valuations will last?? Regards, gw