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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Findit who wrote (6315)	9/29/1999 11:21:00 PM
From: FESHBACH_DISCIPLE	Respond to of 6570

To: Findit who wrote (6315)	9/30/1999 7:23:00 AM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

News release: China Begins Large-Scale High-Definition TV Production September 30, 1999, Xinhua: SHENZHEN XINHUA - China has begun mass producing high-definition digital TVs, as the Konka Group's new production line goes operational in Shenzhen in Guangdong Province. The plant was built at a cost of 500 million yuan and has an annual production capacity of 100,000 units. It is expected to sell 10,000 units this year, all of them in the U.S. market. Being China's leading TV producer, Konka has a research lab in the U.S.'s Silicon Valley. It produced China's first digital TV in 1998. It has a contract with the U.S.'s Mckinsey for sales and marketing and over next three to five years plans to sell over 2 million high-definition digital TV sets. -------------------------------------------------------------- Konka plans on selling 32" DTVs (including the VSB decoder/encoder) at about $3,000. Now, a Chinese company has taken the leadership in selling US-developed technology! At the Delaware Bankruptcy hearing, I introduced myself to a surprised-looking John Koo(and talked with Bob Dangremond and others of the same "US sell out" ilk) and should have asked Koo why Zenith had wasted its opportunity to grab the first-to-market, leadership position, to mass produce affordable DTVs. It's not hard to guess, however, that Koo was waiting to control 100% of Zenith's assets before cranking up his Chinese factories to flood the US market with DTVs. Koo has stated that he wants 25% of the US DTV and STB markets. On the legal front, the key to my case is the fact that LGE is alleged to have controlled the board and engaged in self dealing at the expense of Zenith. The initial allegations are provided at airfarecheck.com Many more allegations are in the works including fraudulent real estate and other transfer of Zenith assets dealings alleged to have been orchestrated by LGE and condoned by the inept non-LGE directors of Zenith. Another interesting fact is that Gannon claimed in Bankruptcy court that he was worried, in March 1998, that LGE was going to pull the plug on Zenith. This is in direct conflict to a story in the NYTimes where LGE promised to stay the course with Zenith. See: March 3, 1998, New York Times Asian Financial Crisis Deals Body Blow to U.S. Operations of Asian Companies By ANDREW POLLACK ...Likewise, LG Group, which owns a controlling stake in Zenith, "has no thought of selling it and we're in it for the long run," said Peter McDermott, executive vice president of LG of the Americas. Some South Korean companies say their American subsidiaries have barely been affected by the crisis. While their countrymen back home were bracing for austerity, LG executives were in Florida recently sponsoring the LG Championship golf tournament, awarding $1.2 million in prizes.